Home Forex News Vantage FX Market Outlook for 21st Oct 2020

Vantage FX Market Outlook for 21st Oct 2020

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#Risk sentiment Risk sentiment continued to ride higher and the commodity market is benefiting from it. Most Asian stocks rose and U.S. futures extended overnight gains amid optimism about progress on stimulus talks in Washington. S&P 500 contracts edged higher after House Speaker Nancy Pelosi said she remains hopeful of a deal before the election.

#DXY The USD dropped to a new low as renewed hopes for a U.S. stimulus agreement underpinned risk appetite. House Speaker Nancy Pelosi said Tuesday she’s hopeful for a deal within a week although Senate Majority Leader Mitch McConnell warned against an agreement before the Nov. 3 election. Meanwhile, the final presidential debate before the U.S. election will be live on Thursday. If this brings us no surprise and Biden could continue a lead, we could largely see USD continue its dropping path.

#CrudeOil #Oil prices continue to drop as U.S. crude inventories released increased in the stockpile by 600,000 barrels. Currently Oil prices are being pushed around by the news of the Stimulus package every other day. Supplies from Libya are not decreasing, and the resurgence of the virus does not seem to be stopping either. Russia is not ready to make decisions on whether to cut their output before the ministerial meeting scheduled for Dec 1.

#Gold prices edged higher on Wednesday, buoyed by a weaker Dollar and increasing hopes for a new U.S. coronavirus relief package ahead of the November elections. Elsewhere, the White House and Democrats in the U.S. Congress moved closer to agreement on a fresh coronavirus aid as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party. This could provide a boost to the market risk sentiment, putting gold prices under pressure.

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

Description:

Price is approaching our Pivot point of 0.66276, which is in line with our 78.6% Fibonacci retracement, 100% Fibonacci extension, and descending trendline resistance, where we could see a potential reversal at this level to our first support level of 0.65388, in line with 100% Fibonacci extension and -27% Fibonacci retracement. It is worth noting that the Ichimoku cloud and EMA (127) are both showing bearish momentum which is in line with our analysis.

Pivot: 0.66276
Why we like it:
78.6% Fibonacci retracement, 100% Fibonacci extension, and descending trendline resistance

1st Support: 0.65388
Why we like it:
100% Fibonacci extension and -27% Fibonacci retracement.

1st Resistance: 0.66444
Why we like it:
127.2% Fibonacci extension and 61.8% Fibonacci retracement.

Trading FX & CFDs carries high risk.

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

Description:

Price is currently heading towards our Pivot point at 1.30607, which is in line with -27% Fibonacci retracement and 61.8%, 88% Fibonacci extension. We could potentially be seeing price rally towards our 1st resistance level at 1.31044. It is worth noting that the Stochastics (21,5,3) is showing bullish pressure at 7% where price has previously bounced off.

Pivot: 1.30607
Why we like it:
-27% Fibonacci retracement and 61.8%, 88% Fibonacci extension

1st Support: 1.30234
Why we like it:
-61.8% Fibonacci retracement and 100%, 78.6% Fibonacci extension

1st Resistance: 1.31044
Why we like it:
50% Fibonacci extension, 61.8% Fibonacci retracement, and horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

#XAUUSD, H4 is reversing from our Pivot point, potential for bearish drop.

Description:

Price is reversing from our Pivot point at 1919.75 which is in line with our 61.8%,127% Fibonacci extension, 78.6% Fibonacci retracement and descending trendline resistance. We could potentially see price drop towards our 1st support level at 1900.53, which is in line with our ascending trendline support. It is worth noting that the price is currently in a triangular squeeze between two conflicting trendlines. Lastly, the RSI is showing bearish pressure where price has previously reacted off the 58% level.

Pivot: 1919.75
Why we like it:
61.8%,127% Fibonacci extension, 78.6% Fibonacci retracement and descending trendline resistance

1st Support: 1900.53
Why we like it:
78.6% Fibonacci extension, 78.6% Fibonacci retracement ascending trendline support

1st Resistance: 1932.68
Why we like it:
Descending trendline resistance and horizontal swing high resistance.

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point of 0.70945, which is in line with our 78.6% Fibonacci retracement, 127.2% Fibonacci extension, and descending trendline resistance, where we could see a potential reversal at this level to our first support level of 0.70017, in line with 61.8% Fibonacci extension and -27% Fibonacci retracement. It is worth noting that the Ichimoku cloud and EMA (34) are both showing bearish momentum which is in line with our analysis.

Pivot: 0.70945
Why we like it:
78.6% Fibonacci retracement, 127.2% Fibonacci extension, and descending trendline resistance

1st Support: 0.70017
Why we like it:
61.8% Fibonacci extension and -27% Fibonacci retracement

1st Resistance: 0.71168
Why we like it:
161.8% Fibonacci extension, descending trendline support

Trading FX & CFDs carries high risk.

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