Home Forex News Vantage FX Market Outlook for 16th Nov 2020

Vantage FX Market Outlook for 16th Nov 2020

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#Risk sentiment. The risk-on mood kicks in, with Asian stocks following their U.S. counterparts to rally higher on Monday. On Friday, both the S&P 500 and the Russell 2000 Index of small caps rallied to all-time highs, while the Dow Jones Industrial Average rose to pre-pandemic levels. The tech-heavy Nasdaq 100 underperformed major gauges amid the rotation to economically sensitive industries. Ten-year Treasury yields ended last week at 0.9%. Elsewhere, Asia-Pacific nations including China, Japan and South Korea on Sunday signed the world’s largest regional free-trade agreement, RCEP, encompassing nearly a third of the world’s population and gross domestic product which could provide a boost to the risk-on market sentiment.

#DXY The dollar fell at the start of the Asian trading session against risk-on currencies as President-elect Joe Biden has started to signal that he and his new administration seems to have no intention of locking down the US while looking for ways to try and bolster the economy. Further a historical trade agreement has been signed between a few APAC nations that includes China, Japan and South Korea. This is currently the world’s largest regional free-trade agreement. With such positive signs the dollar will continue taking a back seat as traders look for more risk-on plays.

#Gold prices pushed slightly higher on Monday, despite the risk-on appetite shown in rallying stock prices. Investors continue to wait in anticipation for news from the US, where President-elect Joe Biden and Vice President-elect Kamala Harris are scheduled to discuss plans for the U.S’s long term growth after the COVID-19 pandemic today. Looking ahead, we maintain a bullish outlook on gold as gold prices continue to be supported by uncertainty in the global economic future and rising COVID-19 cases.

#CrudeOil #Oil Despite drifting sideways towards the end of last week, during today’s Asian trading session, oil prices opened slightly higher. This comes as President-Elect Joe Biden ruling out what people initially thought he would do, that is to lock down the entire country. However traders are still keeping their eyes on OPEC+ upcoming meeting and how the group would be dealing with Libya. WTI climbed 1.2%, whilst Brent rose by about 1%.

#NZDUSD, H4 is reversing to our Pivot point. Potential for a further rise.

Description:

Price is reversing towards our Pivot point of 0.68378, which is in line with 23.6% Fibonacci retracement and horizontal graphical overlap, where we could see a potential rise from this level to our first resistance level of 0.69244, in line with 38.2% Fibonacci retracement and horizontal swing high resistance. It is worth noting that the Ichimoku Cloud and EMA (34) are both showing bullish momentum which is in line with our analysis. Lastly, price is currently trending within an ascending channel.

Pivot: 0.68378
Why we like it:
23.6% Fibonacci retracement and horizontal graphical overlap

1st Support: 0.68082
Why we like it:
78.6% Fibonacci extension and 38.2% Fibonacci retracement

1st Resistance: 0.69244
Why we like it:
38.2% Fibonacci retracement and horizontal swing high resistance

Trading FX & CFDs carries high risk.

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

Description:

Price is currently heading towards our Pivot point at 1.31098, which is in line with 61.8% Fibonacci extension, 50% Fibonacci retracement and Horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 1.29407. It is worth noting that the EMA (127) is showing bearish pressure. Lastly, the Stochastics Oscillator (21,5,3) is showing bearish pressure where price has previously reversed off the 95% level.

Pivot: 1.31098
Why we like it:
61.8% Fibonacci extension, 50% Fibonacci retracement and Horizontal graphical overlap

1st Support: 1.29407
Why we like it:
50% Fibonacci extension and Horizontal graphical support

1st Resistance: 1.31649
Why we like it:
78.6% Fibonacci extension, 50% Fibonacci retracement and horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

#XAUUSD, H4 is approaching our Pivot point, potential for a further rise.

Description:

Price is approaching our Pivot point at 1895.01 which is in line with our 38.2% Fibonacci retracement, 100% Fibonacci extension and horizontal graphical overlap. We could potentially see price rise towards our 1st resistance level at 1926.16, which is in line with 61.8% Fibonacci extension, 61.8% Fibonacci retracement and Horizontal graphical level.

Pivot: 1895.01
Why we like it:
38.2% Fibonacci retracement, 100% Fibonacci extension and horizontal graphical overlap

1st Support: 1877.49
Why we like it:
127% Fibonacci extension, 23.6% Fibonacci retracement and Horizontal graphical level.

1st Resistance: 1926.16
Why we like it:
61.8% Fibonacci extension, 61.8% Fibonacci retracement and Horizontal graphical level.

Trading FX & CFDs carries high risk.

#AUDUSD, H4 is approaching our Pivot point, potential for a rise.

Description:

Price is approaching our Pivot point of 0.72921, which is in line with our 61.8% Fibonacci retracement, where we could see a potential bounce at this level to our first resistance level of 0.73431, in line with 38.2% Fibonacci extension, 127% Fibonacci retracement and horizontal swing high resistance. It is worth noting that the Ichimoku cloud is both showing bullish momentum which is in line with our analysis. Lastly, the Stochastics Oscillator (21,5,3) is showing bullish momentum where price has previously bounced off the 5% level.

Pivot: 0.72921
Why we like it:
61.8% Fibonacci retracement

1st Support: 0.72579
Why we like it:
23.6% Fibonacci retracement.

1st Resistance: 0.73431
Why we like it:
38.2% Fibonacci extension, 127% Fibonacci retracement and horizontal swing high resistance

Trading FX & CFDs carries high risk.

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