Home Forex News Vantage FX Market Outlook for 22nd Oct 2020

Vantage FX Market Outlook for 22nd Oct 2020

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#Risk sentiment U.S. equity futures and Asian shares retreated after a top American intelligence official said that Russia and Iran have attempted to interfere in next month’s presidential election. Earlier, U.S. shares closed lower after a volatile session amid signs that a U.S. stimulus package is unlikely to become law before the election. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin made progress in their latest talks and will speak again Thursday even as the odds remained long for a deal that could pass in the Senate.

#DXY The USD bounced back after the hopes for a quick stimulus package dimmed. Senate Republicans remain on a completely different track, and there aren’t enough votes in the chamber needed to pass a multi-trillion-dollar package, according to a Senate aide. Mitch McConnell “might not mind doing it after the election,” Pelosi said. The market is generally not expecting a stimulus package to be passed before the election and USD could rise as investors flock to safe havens.

#GBP has broken out of the ranges on Wednesday into a six-week high, however, it is said that the strong move is done for now as news on Brexit is still not final, which may in turn send the pound back down to uncertainty. The cost of a no-deal Brexit are too high for either party, and investors are waiting for more concrete evidence for the trade deal. And #EUR is also facing choppiness with the opening of Wednesday, down by 0.1%

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

Description:

Price is approaching our Pivot point at 1.18496, which is in line with our 23.6%, 61.8% Fibonacci retracement and horizontal graphical support. We could potentially see price rise from this level towards our 1st resistance at 1.19207. It’s worth noting that price is trending above the Ichimoku cloud and EMA(21) which is in line with our bullish bias.

Pivot: 1.18496
Why we like it:
23.6%, 61.8% Fibonacci retracement and horizontal graphical support

1st Support: 1.18076
Why we like it:
38.2% Fibonacci retracement

1st Resistance: 1.19207
Why we like it:
161.8% Fibonacci retracement and 100% Fibonacci extension.

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point at 1.30758, which is in line with our 38.2%, 50% Fibonacci retracement, 100% Fibonacci extension and horizontal graphical overlap. We could potentially see price rise towards our 1st resistance level at 1.32877. It’s worth noting that price is currently trending above an ascending trendline. And the MACD is showing bullish momentum above the 0-line.

Pivot: 1.30758
Why we like it:
38.2%, 50% Fibonacci retracement, 100% Fibonacci extension and horizontal graphical overlap

1st Support: 1.30119
Why we like it:
61.8% Fibonacci Retracement and horizontal graphical overlap

1st Resistance: 1.32877
Why we like it:
78.6%, -27% Fibonacci retracement and Horizontal graphical resistance overlap.

Trading FX & CFDs carries high risk.

#USDJPY, H4 is approaching our Pivot point, potential for a breakout.

Description:

Price is approaching our Pivot point at 104.685 which is in line with our 23.6% Fibonacci Retracement and 100% Fibonacci extension. We could potentially see price rise further towards our 1st resistance level at 105.066. It is worth noting that the ascending EMA (34) is acting as a magnet where price is drawn towards. The Stochastics (21,5,3) is showing bullish pressure where price has reacted off the 6% previously. Lastly, do wait for the price to close above the Pivot point before entering trade.

Pivot: 104.685
Why we like it:
23.6% Fibonacci Retracement and 100% Fibonacci extension.

1st Support: 104.463
Why we like it:
78.6% Fibonacci retracement, 127.2%Fibonacci extension, horizontal graphical support.

1st Resistance: 105.544
Why we like it:
61.8% Fibonacci retracement Horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

#USDCHF, H4 is bouncing off our Pivot point, potential for a bullish rise.

Description:

Price is bouncing off our Pivot point at 0.90893, which is in line with our 61.8% Fibonacci Retracement and previous swing low support. Price could potentially rally towards our 1st resistance level at 0.91396. It’s worth noting that the RSI is showing bullish exaggerated divergence where price potentially pushes towards the upside.

Pivot: 0.90893
Why we like it:
61.8% Fibonacci Retracement and previous swing low support

1st Support: 0.90772
Why we like it:
78.6% Fibonacci extension and horizontal graphical support level.

1st Resistance: 0.91396
Why we like it:
61.8% Fibonacci Retracement and 61.8% Fibonacci extension

Trading FX & CFDs carries high risk.

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