Home Broker News Vantage FX Market Outlook for 23rd Feb 2021

Vantage FX Market Outlook for 23rd Feb 2021

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#Risk sentiment Risk aversion is back in the market as most Asian stocks look poised for a weaker open Tuesday following declines in U.S. markets. Investors’ expectations for strengthening growth and inflation pushed bond yields higher. Commodities have extended gains to multiyear highs. The Nasdaq 100 tumbled more than 2% to a three-week low as investors questioned the appeal of expensive, growth-focused stocks.

#DXY The dollar went lower on Monday while the market keeps betting on a faster reflation trade. Although volatility picks up, the market is betting on a faster and stronger growth given the prospect of a stimulus package from the Biden administration. Signs show that the Covid-19 situation is getting contained better in most of the countries. Tonight’s Powell Testimony will be on focus and if he insists on a dovish monetary policy, USD is likely to weaken further.

#Gold Gold prices pared recent losses on Tuesday. Looking ahead, gold prices could be under pressure as anticipation of additional fiscal stimulus measures to push through in mid-March damped the safe-haven’s appeal. Gold has been trading sideways at the start of this year, struggling to make progress since the beginning of the year as the high performing 10-year US Treasury yields and optimism in the market along with progress on the Covid-19 vaccine front put downward pressure on the safe-haven metal.

#CrudeOil #Oil Oil prices pushed higher and went well above $62 a barrel for the first time in months as traders are expecting a further tightening of production in the markets which could push prices even higher. Huge oil trading firms are also bullish on oil price as they see the glut of oil inventories start dwindling as vaccines continue to be rolled out and summer comes along. At the start of the Asian session, WTI climbed by 0.7%, whilst Brent climbed by 1.4%.

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

Description:

Price is approaching our Pivot point of 0.73152, which is in line with 50%, 23.6% Fibonacci retracement and horizontal graphical overlap. A potential rise from here towards our first resistance level of 0.73645, in line with -27% fibonacci retracement and 61.8% fibonacci extension. Please note that price is trending above the Ichimoku cloud and MACD is above the 0 line, in line with our bullish view.

Pivot: 0.73152
Why we like it:
50%, 23.6% Fibonacci retracement and horizontal graphical overlap

1st Support: 0.72751
Why we like it:
50% fibonacci retracement, 61.8% fibonacci extension and horizontal graphical overlap.

1st Resistance: 0.73645
Why we like it:
-27% fibonacci retracement and 61.8% fibonacci extension

Trading FX & CFDs carries high risk.

#USDCAD approaching our Pivot, potential for a drop.

Description:

Price is approaching our Pivot point at 1.26120, which is in line with 38.2%, 61.8%, 61.8% Fibonacci retracement, descending trendline resistance and horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 1.25633. It is worth noting that price is trending under the descending trendline and Ichimoku cloud, in line with our analysis.

Pivot: 1.26120
Why we like it:
38.2%, 61.8%, 61.8% Fibonacci retracement, descending trendline resistance and horizontal graphical overlap

1st Support: 1.25633
Why we like it:
127%, -68% Fibonacci retracement, 88% fibonacci extension and horizontal swing low support.

1st Resistance: 1.27460
Why we like it:
38.2%, 50% Fibonacci retracement, 100% Fibonacci extension and horizontal swing high resistance.

Trading FX & CFDs carries high risk.

#XAUUSD has reversed from our Pivot point, potential for a further drop.

Description:

Price has reversed from our Pivot point at 1818.99, which is in line with our 61.8% Fibonacci retracement, 78.6% fibonacci extension, descending trendline resistance and horizontal graphical overlap. We could potentially see price drop from our Pivot point towards our 1st support level at 1772.16, which is in line with a fibonacci confluence. Its noteworthy price is trending under the descending trendline, and Stochastics are showing bearish pressure where price have previously reacted away from the 96% level.

Pivot: 1818.99
Why we like it:
61.8% Fibonacci retracement, 78.6% fibonacci extension, descending trendline resistance and horizontal graphical overlap

1st Support: 1772.16
Why we like it:
78.6% fibonacci retracement, 61.8%, 161.8% fibonacci extension and Horizontal graphical swing low support

1st Resistance: 1833.29
Why we like it:
76.4%, -27% fibonacci retracement and 100% fibonacci extension

Trading FX & CFDs carries high risk.

#AUDUSD, H4 above our Pivot point, potential for rise.

Description:

Price is above our Pivot point at 0.78983, in line with 61.8%, 50% Fibonacci retracement, 61.8% fibonacci extension and horizontal graphical overlap. Where we could potentially see a rise from our pivot towards our 1st resistance level at 0.77884. It is worth noting that price is trending above the ascending trendline and Ichimoku cloud, in line with our bullish view.

Pivot: 0.78983
Why we like it:
61.8%, 50% Fibonacci retracement, 61.8% fibonacci extension and horizontal graphical overlap

1st Support: 0.78650
Why we like it:
127% Fibonacci retracement, 88%, 127% Fibonacci extension and horizontal graphical support.

1st Resistance: 0.79752
Why we like it:
61.8% Fibonacci extension, -61.8% and -61.8% Fibonacci retracement.

Trading FX & CFDs carries high risk.

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