Home Forex News Vantage FX Market Outlook for 23rd Oct 2020

Vantage FX Market Outlook for 23rd Oct 2020

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#Risk sentiment was stable on Friday with U.S. equity futures steady and benchmark Treasury yields remained near their highest since June. Traders focused on the final presidential debate and lawmakers in Washington continued to haggle over a spending bill. S&P 500 contracts were little changed after the benchmark closed higher with financial stocks rallying almost 2%.

#DXY The dollar edged higher, making commodities more expensive for other currency holders as government officials negotiate stimulus plans Thursday afternoon. Investors remained finely tuned into developments in Washington, where lawmakers continue to work toward a package to bolster the economy. House speaker Nancy Pelosi signaled optimism on a deal with the administration, opposition remains in the Republican-controlled Senate, making a pact before the election less likely. #USD could go higher in a chaotic political environment and dimmed hopes for a stimulus package before 3rd Nov.

#Gold’s recent price shows that it is more seen as a risk asset instead of a safe haven. It has been rising and falling with stocks since March. When treasury yields are capped at low bound since March, the market is looking at the inflation expectation for a real Treasury yield. So when risk appetite goes higher, inflation expectations rise with it, reducing the real interest rate, thus boosting Gold. At this moment, the risk appetite is a bit muted awaiting the debate results. If risk appetite goes higher, gold could benefit from it.

#Oil edge lower by the end of this week as resurgence of coronavirus halted optimism seen on Oil prices in the previous day. Both Europe and the U.S. are being affected by the second wave of the virus and impacted the recovery for oil demand. Oil supplies are expected to be cut as the forecast for oil consumption has been reduced this quarter in Australia and New Zealand Banking Group Ltd.

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

Description:

Price is approaching our Pivot point of 0.66413, which is in line with our 38.2%, 61.8% Fibonacci retracement, 38.2% Fibonacci extension, and horizontal graphical overlap, where we could see a potential bounce at this level to our first resistance level of 0.67245, in line with 127% Fibonacci extension and -27%, 127.2% Fibonacci retracement. It is worth noting that the Ichimoku cloud and MACD are both showing bullish momentum which is in line with our analysis.

Pivot: 0.66413
Why we like it:
38.2%, 61.8% Fibonacci retracement, 38.2% Fibonacci extension, and horizontal graphical overlap

1st Support: 0.65785
Why we like it:
23.8%, 78.6% Fibonacci retracement and horizontal swing low support

1st Resistance: 0.67245
Why we like it:
127% Fibonacci extension and -27%, 127.2% 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 1.31567, which is in line with 61.8% Fibonacci retracement and 50% Fibonacci extension and descending trendline resistance. We could potentially see price drop towards our 1st support level at 1.30556. It is worth noting that the MACD and Ichomoku cloud are both showing bearish pressure.

Pivot: 1.31567
Why we like it:
61.8% Fibonacci retracement and 50% Fibonacci extension and descending trendline resistance

1st Support: 1.30556
Why we like it:
-27% Fibonacci retracement and 127.2% Fibonacci extension

1st Resistance: 1.32044
Why we like it:
78.6% Fibonacci retracement, and horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

#XAUUSD, H4 is reversing from our Pivot point, potential for a bounce.

Description:

Price is reversing from our Pivot point at 1902.26 which is in line with our 61.8% Fibonacci extension, 78.6% Fibonacci retracement and ascending trendline support. We could potentially see price rise towards our 1st resistance level at 1923.16, which is in line with 78.6% Fibonacci extension, 61.8% Fibonacci retracement and our descending trendline resistance. It is worth noting that the price is currently in a triangular squeeze between two conflicting trendlines. Lastly, the Ichimoku cloud is showing bullish pressure.

Pivot: 1902.26
Why we like it:
61.8% Fibonacci extension, 78.6% Fibonacci retracement and ascending trendline support

1st Support: 1892.57
Why we like it:
78.6% Fibonacci retracement and horizontal graphical support

1st Resistance: 1923.16
Why we like it:
78.6% Fibonacci extension, 61.8% Fibonacci retracement and our descending trendline resistance

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point of 0.71069, which is in line with our 23.6%, 61.8% Fibonacci retracement and horizontal graphical overlap support, where we could see a potential reversal at this level to our first resistance level of 0.71963, in line with 127.2% Fibonacci extension and 78.6% Fibonacci retracement. It is worth noting that the MACD and EMA (34) are both showing bullish momentum which is in line with our analysis.

Pivot: 0.71069
Why we like it:
23.6%, 61.8% Fibonacci retracement and horizontal graphical overlap support

1st Support: 0.70615
Why we like it:
61.8% Fibonacci retracement and horizontal graphical overlap support.

1st Resistance: 0.71963
Why we like it:
127.2% Fibonacci extension and 78.6% Fibonacci retracement

Trading FX & CFDs carries high risk.

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