Home Forex News Vantage FX Market Outlook for 11th Nov 2020

Vantage FX Market Outlook for 11th Nov 2020

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#Risk sentiment Risk sentiment is steady on Wednesday morning. Most Asian stocks pushed higher Wednesday after a rotation out of defensive technology names into shares more exposed to economic growth continued in the U.S. overnight. The development in the vaccine front has pushed risk assets higher alongside the commodities.

#DXY The dollar edged lower as the optimism over the vaccine pushed risk assets higher, at the cost of safe havens. But the moves might have gone too far, and USD could still have its upside back if the vaccine development fails to provide further details. In the near term, the direction of USD still depends on the stimulus talk and the vaccine front.

#Gold prices plunged on Monday following the first successful late-stage COVID-19 vaccine trials which boosted the market risk sentiment and encouraged investors to buy higher-yielding assets like the U.S. Dollar. This drove down demand for dollar-denominated gold. Meanwhile, the U.S. Treasury yields leaped on Monday following the news from Pfizer. This made the U.S. Dollar a more attractive investment to the detriment of gold.

#CrudeOil #Oil Oil price pushed higher slightly before drifting sideways. This indecision in the markets is due to market participants awaiting the result of Pfizer’s vaccine against a slow recovery in oil demand. Further, recent news regarding one of the oil giants, Shell, reported that they are looking to cut headcounts in their largest refinery plant in Singapore and looking to shift towards green energy. In addition, analysts from Goldman Sachs Group are saying that should the virus infection rate continue to maintain its highs, this would serve as a roadblock to oil’s rising price. WTI rose by 1%. Similarly, Brent climbed by 1% from the previous session as well.

#EURUSD, H4 is approaching our Pivot point. Potential for a further rise.

Description:

Price is approaching our Pivot point at 1.17614, which is in line with our 50% Fibonacci retracement, 100, 61.8% Fibonacci extension and horizontal graphical overlap. We could potentially see price rise from this level towards our 1st Resistance at 1.19215. It’s worth noting price is trending above the ascending trendline, and the Ichimoku cloud is showing bullish momentum.

Pivot: 1.17614
Why we like it:
50% Fibonacci retracement, 100, 61.8% Fibonacci extension, ascending trendline support and horizontal graphical overlap

1st Support: 1.16710
Why we like it:
78.6% Fibonacci retracement and Ascending trendline support

1st Resistance: 1.19215
Why we like it:
50% Fibonacci extension.

Trading FX & CFDs carries high risk.

#GBPUSD, H4 is reversing from our Pivot point, potential for a drop.

Description:

Price is reversing from our Pivot point at 1.32954, which is in line with our 127.2% and 100% Fibonacci extension. We could potentially see the price drop towards our 1st support level at 1.31340. It’s worth noting that Stochastic Oscillator is showing bearish momentum where price has previously reversed from the 93% Level

Pivot: 1.32954
Why we like it:
127.2% and 100% Fibonacci extension

1st Support: 1.31340
Why we like it:
50% Fibonacci Retracement, 38.2%, 88% Fibonacci extension and Horizontal graphical support.

1st Resistance: 1.32807
Why we like it:
127.2%, 161.8% Fibonacci extension.

Trading FX & CFDs carries high risk.

#USDJPY, H4 is approaching our Pivot point, potential for a drop.

Description:

Price is approaching our Pivot point at 105.307 which is in line with our 161.8% Fibonacci extension and horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 104.294. It is worth noting that the Stochastic Oscillator is showing bearish pressure where price has previously reacted off the 85% level.

Pivot: 105.307
Why we like it:
161.8% Fibonacci extension and horizontal graphical overlap

1st Support: 104.294
Why we like it:
50%, 61.8% Fibonacci retracement and 61.8%, 78.6%, Fibonacci extension

1st Resistance: 105.935
Why we like it:
127.2% Fibonacci retracement and Horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

#USDCHF, H4 is approaching our Pivot point, potential for a drop.

Description:

Price is approaching our Pivot point at 0.91599, which is in line with our 78.6% Fibonacci Retracement, 100% Fibonacci extension and horizontal graphical level. Price could potentially drop towards our 1st support level at 0.90810. It’s worth noting that price is trending beneath the descending trendline, and the Stochastic Oscillator is showing bearish pressure where price has previously reacted off the 92% level.

Pivot: 0.91599
Why we like it:
78.6% Fibonacci Retracement, 100% Fibonacci extension and horizontal graphical level

1st Support: 0.90810
Why we like it:
50%, 38.2% Fibonacci Retracement.

1st Resistance: 0.92036
Why we like it:
127.2% Fibonacci extension and horizontal graphical resistance

Trading FX & CFDs carries high risk.

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