Home Forex News Vantage FX Market Outlook for 18th Nov 2020

Vantage FX Market Outlook for 18th Nov 2020

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#Risk sentiment. Asian stock markets held steady on Wednesday after U.S. shares retreated as concerns on the rising number of Covid-19 cases clouded any optimistic outlook on the vaccine developments. The dollar nudged higher versus major peers. Elsewhere, stocks fell in Japan, and were little changed elsewhere while S&P 500 futures dipped from a record high earlier as risk aversion kicked in. Meanwhile, treasury yields held declines as Federal Reserve Chair Jerome Powell said the U.S. economy still has a “long way to go” before it fully recovers from the pandemic. Looking ahead, risk aversion could stay through the day as the U.S. Securities and Exchange Commission threatened to kick Chinese companies off U.S. stock exchanges which could heightened geopolitical tensions further.

#DXY The dollar pared its losses and held steady overnight as US Fed Chairman Jerome Powell remarked that the US economy still has a long way to go before recovering from the pandemic. This statement sent risk havens climbing while risk-on currencies pulled back a little. As long as there is a risk of a virus resurgence we should see the USD trade sideways as investors stand on the sidelines to monitor the situation.

#Gold prices dipped slightly on Wednesday. Overall, it continues to trade sideways, as investors await more news on stimulus measures from the U.S. Recent optimism from the vaccine developments are countered with growing concerns on the increasing pace of infections, while a weakening dollar continues to keep gold prices in a tight range. Looking ahead, we maintain a bullish outlook on Gold, until plans for stimulus and the mass rollout of a COVID-19 vaccine become clearer.

#CrudeOil #Oil Oil prices retreated overnight on news that the US crude stockpile was higher than expected. This countered the previous growing optimism of recovering oil demand over in Asia. The ongoing OPEC+ meeting also ended without any clear signal that the member countries will be committed to cutting their output early next year. These negative news acted as barriers and prevented oil prices from climbing further. WTI dipped by 29 cents, whilst Brent similarly dropped by about 0.5%.

#NZDUSD, H4 is reversing towards our Pivot point. Potential for a drop.

Description:

Price is reversing towards our Pivot point of 0.68774, which is in line with 38.2% Fibonacci extension, 38.2% Fibonacci retracement and horizontal graphical overlap, where we could see a potential drop from this level to our first support level of 0.68167, in line with 38.2% Fibonacci retracement, 100% Fibonacci extension, and horizontal graphical support. It is worth noting that the Stochastic Oscillator (21,5,3) is showing bearish pressure where price has previously reacted off the 85% level.

Pivot: 0.68774
Why we like it:
38.2% Fibonacci extension, 38.2% Fibonacci retracement and horizontal graphical overlap

1st Support: 0.68167
Why we like it:
38.2% Fibonacci retracement, 100% Fibonacci extension, and horizontal graphical support

1st Resistance: 0.69251
Why we like it:
38.2% Fibonacci extension 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 reversing from our Pivot point at 1.31209, which is in line with 61.8% Fibonacci extension, 38.2% Fibonacci retracement and Horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 1.30193. It is worth noting that price is currently trending under a descending trendline.

Pivot: 1.31209
Why we like it:
61.8% Fibonacci extension, 38.2% Fibonacci retracement and Horizontal graphical overlap

1st Support: 1.30193
Why we like it:
38.2% Fibonacci extension, 61.8% Fibonacci retracement and Horizontal graphical support

1st Resistance: 1.31700
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 reversing towards our Pivot point, potential for a bounce.

Description:

Price is approaching our Pivot point at 1870.47 which is in line with our 61.8% Fibonacci retracement, 78.6% Fibonacci extension and horizontal graphical overlap. We could potentially see price rise towards our 1st resistance level at 1910.86, which is in line with 50% Fibonacci retracement and Horizontal graphical level. It is worth noting that price is trending in an ascending price channel, in line with our bullish bias

Pivot: 1870.47
Why we like it:
61.8% Fibonacci retracement, 78.6% Fibonacci extension and horizontal graphical overlap

1st Support: 1856.50
Why we like it:
127% Fibonacci extension and Horizontal graphical level

1st Resistance: 1910.86
Why we like it:
50% Fibonacci retracement and Horizontal graphical level

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point of 0.72945, which is in line with our 38.2% Fibonacci retracement, 50% Fibonacci extension and horizontal graphical overlap, where we could see a potential drop from this level to our first support level of 0.72179, in line with 127.2% Fibonacci extension, 38.2% Fibonacci retracement and horizontal graphical support. It is worth noting that the Stochastic Oscillator (21,5,3) is showing bearish pressure where price has previously reacted off the 93% level.

Pivot: 0.72945
Why we like it:
38.2% Fibonacci retracement, 50% Fibonacci extension and horizontal graphical overlap

1st Support: 0.72179
Why we like it:
127.2% Fibonacci extension, 38.2% Fibonacci retracement and horizontal graphical support

1st Resistance: 0.73327
Why we like it:
38.2% Fibonacci extension and horizontal swing high resistance

Trading FX & CFDs carries high risk.

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