Home Forex News Vantage FX Market Outlook for 20th Nov 2020

Vantage FX Market Outlook for 20th Nov 2020

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#Risk sentiment. US futures slid on Friday after a dispute between Secretary Steven Mnuchin and FED on its emergency landing facilities. The S&P 500 contracts retreated after the Trump administration and Fed publicly disagreed over whether to extend pandemic programs. Stocks pushed higher in Australia, dipped in Japan and fluctuated in China. Elsewhere, Treasuries yields declined and the dollar ticked higher. Looking ahead, we could be seeing a mixed market risk sentiment as we head towards the end of the week, with investors’ optimism over the vaccine progress countered by growing concerns of the economic outlook amid a surge in the number of Covid-19 cases and deadlock in the US over fresh fiscal relief.

#DXY The dollar weakened considerably overnight as the dollar smile theory showed up. This weakening of the USD was not due to investors preferring risk on assets but rather due to bearish news arising from a public spat between the US central bank and the US Treasury. This is a sign that the US economy could be weakening further. President Trump’s administration tried to end several emergency pandemic lending programs that were being carried out by the Fed saying that the additional funds were needed elsewhere. These lending programs are targeted to help keep the US economy afloat.

#Gold prices continued its steady decline at the end of the week, as positive news on a COVID-19 vaccine curbs demand for safe-haven assets. That being said, both New York city and California have extended restrictions to control the spread of COVID-19, alluding to fears that have not subsided completely during this pandemic. We maintain a bullish outlook on gold, as we wait for finalised plans for stimulus and mass vaccine rollout.

#CrudeOil #Oil Oil drifted sideways over night and opened lower at the start of the Asian trading session. This comes as New York city implemented further lockdown restrictions. This raised immediate concerns for the short term demand for oil. OPEC+ is also struggling as it is facing surging Libyan output with no clear decision on the production cuts in 2021 as earlier announced. WTI dipped by 0.2%, whilst Brent dropped by about 0.3%

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

Description:

Price is reversing from our Pivot point of 0.69282, which is in line with 23.6% Fibonacci extension,61.8% Fibonacci retracement and horizontal graphical overlap, where we could see a potential drop from this level to our first support level of 0.68629, in line with 78.6% Fibonacci extension, 61.8%, -27% Fibonacci retracement and horizontal graphical overlap. It is worth noting that the MACD is showing bearish momentum and price has broken out of the ascending trendline.

Pivot: 0.69282
Why we like it:
23.6% Fibonacci extension,61.8% Fibonacci retracement and horizontal graphical overlap

1st Support: 0.68629
Why we like it:
78.6% Fibonacci extension, 61.8%, -27% Fibonacci retracement and horizontal graphical overlap

1st Resistance: 0.69625
Why we like it:
61.8% 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 1.31210, which is in line with 61.8%, 50% Fibonacci retracement and Horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 1.30189. It is worth noting that price is trending under a descending trendline, both Ichimoku Cloud and EMA (100) are showing bearish pressure.

Pivot: 1.31210
Why we like it:
61.8%, 50% Fibonacci retracement and Horizontal graphical overlap

1st Support: 1.30189
Why we like it:
61.8% Fibonacci retracement, 76.4% Fibonacci extension and Horizontal graphical support

1st Resistance: 1.31700
Why we like it:
61.8%, 88% 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 1876 which is in line with our 50%, 61.8% Fibonacci retracement, 50% Fibonacci retracement and horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 1844.21, which is in line with -27% Fibonacci retracement. It is worth noting that the MACD and Ichimoku cloud are showing bearish momentum.

Pivot: 1876
Why we like it:
50%, 61.8% Fibonacci retracement, 50% Fibonacci retracement and horizontal graphical overlap

1st Support: 1844.21
Why we like it:
-27% Fibonacci retracement.

1st Resistance: 1890.83
Why we like it:
88.6% Fibonacci extension, 76.4% 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 0.73013, which is in line with our 78.6% Fibonacci retracement, 38.2% Fibonacci extension and horizontal graphical overlap, where we could see a potential drop at this level to our first support level of 0.72334, in line with 100% Fibonacci extension, -27% Fibonacci retracement and horizontal graphical support. It is worth noting that the MACD is showing bearish momentum which is in line with our analysis.

Pivot: 0.73013
Why we like it:
78.6% Fibonacci retracement, 38.2% Fibonacci extension and horizontal graphical overlap

1st Support: 0.72334
Why we like it:
100% Fibonacci extension, -27% Fibonacci retracement and horizontal graphical support

1st Resistance: 0.73404
Why we like it:
61.8% Fibonacci retracement and horizontal swing high resistance

Trading FX & CFDs carries high risk.

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