Home Forex News Vantage FX Market Outlook for 14th Oct 2020

Vantage FX Market Outlook for 14th Oct 2020

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#Risk sentiment Commodity market went lower on Wednesday morning with the risk sentiment slightly down. Asian stocks followed their U.S. counterparts lower as earnings season began and there was no sign of a quick end to the fiscal stimulus stalemate. Prospects for U.S. fiscal stimulus before next month’s election dimmed, with House Speaker Nancy Pelosi demanding the Trump administration revamp its latest offer and Senate Republican leader Mitch McConnell pushing a smaller-scale strategy that she quickly rejected. The stimulus talk tension is likely to persist for a while in the market, capping the upside for the risk-sensitive assets including commodities.

#DXY The U.S. dollar went higher on Wednesday as the market is panicking into safe havens amid uncertainties. This Tuesday Johnson & Johnson paused the trial of its coronavirus vaccine amid an unexpected illness in one participant, pushing capital flows into the safe havens. The market is vulnerable without further progress on the stimulus package and the earnings season could give us a reality check on how the economy is doing while the coronavirus is still not under control in many countries.

#GBP

#EUR is due for pullback as risk-off sentiments are in play

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

Description:

Price is bouncing off our Pivot point at 1.17923, which is in line with our 38.2% Fibonacci retracement, 78.6% Fibonacci extension, and horizontal graphical support. We could potentially be seeing a rise above this level towards our 1st resistance at 1.18686. It’s worth noting that the Ichimoku cloud and price channel is showing bullish pressure.

Pivot: 1.17923
Why we like it:
38.2% Fibonacci retracement, 78.6% Fibonacci extension, and horizontal graphical support.

1st Support: 1.17301
Why we like it:
61.8% Fibonacci extension and horizontal graphical support

1st Resistance: 1.18686
Why we like it:
127% Fibonacci Extension and Horizontal graphical resistance level

Trading FX & CFDs carries high risk.

#GBPUSD, H4 is breaking above our Pivot point, potential for a further rise.

Description:

Price is breaking above our Pivot point at 1.30087 which is in line with our horizontal graphical overlap. We could potentially see price rally towards our 1st resistance level at 1.31705, once price has broken the intermediate resistance dotted line at 1.30518. It’s worth noting that the Stochastic Oscillator (13,5,3) is showing bullish momentum from the ascending trendline where it has previously bounced off. Lastly, the Ichimoku cloud is showing bullish momentum where price is trending above the cloud.

Pivot: 1.29417
Why we like it:
61.8% Fibonacci retracement.

1st Support: 1.28418
Why we like it:
50% Fibonacci Retracement, 50% Fibonacci extension and Horizontal graphical support

1st Resistance: 1.30975
Why we like it:
78.6%, 161.8% Fibonacci Extension and -27% Fibonacci Retracement.

Trading FX & CFDs carries high risk.

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

Description

Price is reversing from our Pivot point at 105.629 which is in line with our 23.6% Fibonacci Retracement, and breakout and is currently testing our green dotted ascending trendline. We could potentially be seeing price dropping towards our 1st support level at 104.900. It is worth noting that the price is still respecting the larger red dotted descending trendline.

Pivot: 105.629
Why we like it:
23.6% Fibonacci Retracement, and breakout of ascending trendline.

1st Support: 104.900
Why we like it:
61.8% Fibonacci Retracement, horizontal graphical support.

1st Resistance: 106.135
Why we like it:
Horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

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

Description

Price is approaching our Pivot point at 0.91370 which is in line with our 23.6% Fibonacci Retracement and horizontal graphical area. Price could potentially reverse and drop towards our 1st support level at 0.90788. It’s worth noting that the Ichimoku cloud is showing bearish momentum. And price has been respecting the bearish descending channel.

Pivot: 0.91370
Why we like it:
23.6% Fibonacci Retracement and horizontal graphical area.

1st Support: 0.90788
Why we like it:
88% Fibonacci Retracement and 78.6% Fibonacci Extension

1st Resistance: 0.72345
Why we like it:
161.8% Fibonacci extension, descending trendline resistance and horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

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