Home Forex News Vantage FX Market Outlook for 27th Oct 2020

Vantage FX Market Outlook for 27th Oct 2020

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#Risk sentiment Commodity market went lower as risk-off sentiment dominated the market on Tuesday morning. U.S. stock went lower on Monday night when the S&P 500 saw its biggest loss in a month. Ongoing spending talks in Washington continued to weigh on sentiment as prospects dimmed for fiscal aid before the presidential election.

#DXY The dollar weakened with traders awaiting a slew of U.S. data due this week that may help shape the Fed’s policy outlook. This week we will see the release of U.S. initial jobless claims, 3Q GDP and durable goods orders, which could help determine the Fed’s attitude on their next meeting in Nov. As we approach the data release, USD could fluctuate in ranges.

#Gold eased higher on Tuesday, supported by a weaker dollar and concerns stemming from the surging coronavirus spread globally and its economic fallout. U.S. House of Representatives Speaker Nancy Pelosi is hopeful that congressional Democrats and the Trump administration can reach agreement on the coronavirus relief bill before the elections, however White House economic adviser Larry Kudlow told reporters on Monday that talks have slowed. Elsewhere, Gold could benefit from the widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

#CrudeOil #Oil prices rose in a miniscule amount as the U.S. dollar weakened and drove investors to commodities. Although Asia has recouped most of its oil demand to pre-covid levels, throughout the U.S. and Europe are renewed surging of virus cases which dim the hopes of oil producers. Big producers like Libya are still set to boost output of 1 million barrels a day. Brent gained 0.6% after losing 3.1% and WTI added 21cents to $38.77 during the Asia session.

#NZDUSD, H4 is bouncing from our Pivot point, potential for further rise.

Description:

Price is bouncing from our Pivot point of 0.66749, which is in line with our 23.6% Fibonacci retracement and horizontal graphical overlap, where we could see a potential rally at this level to our first resistance level of 0.67442, in line with 50% Fibonacci extension and 78.6% Fibonacci retracement. It is worth noting that the Ichimoku cloud and MACD are both showing bullish momentum.

Pivot: 0.66749
Why we like it:
23.6% Fibonacci retracement and horizontal graphical overlap

1st Support: 0.66335
Why we like it:
76.4% Fibonacci retracement and horizontal graphical overlap support

1st Resistance: 0.67442
Why we like it:
50% Fibonacci extension and 78.6% Fibonacci retracement

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point at 1.31374, which is in line with 61.8%, 76.4% Fibonacci retracement , 50% Fibonacci extension, ascending trendline support and descending trendline support. We could potentially see price rally towards our 1st resistance level at 1.32207. It is worth noting that the MACD is showing bullish pressure.

Pivot: 1.31374
Why we like it:
61.8%, 76.4% Fibonacci retracement , 50% Fibonacci extension, ascending trendline support and descending trendline support

1st Support: 1.30875
Why we like it:
78.6% Fibonacci retracement and previous horizontal swing low

1st Resistance: 1.32207
Why we like it:
78.6% Fibonacci retracement, 61.8% Fibonacci retracement and horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point at 1907.67 which is in line with our 50%, 78.6% Fibonacci retracement and horizontal graphical overlap. We could potentially see price rise towards our 1st resistance level at 1929.84, which is in line with 78.6% Fibonacci extension and our horizontal graphical resistance. It is worth noting that the Stochastic (21,5,3) is showing bullish pressure where price has previously reacted off the 20% level.

Pivot: 1907.67
Why we like it:
50%, 78.6% Fibonacci retracement and horizontal graphical overlap.

1st Support: 1893.87
Why we like it:
78.6% Fibonacci retracement and horizontal graphical support

1st Resistance: 1929.84
Why we like it:
50%, 78.6% Fibonacci retracement and horizontal graphical overlap

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point of 0.71588, which is in line with our 61.8% Fibonacci retracement, 61.8% Fibonacci extension and horizontal graphical overlap resistance, where we could see a potential reversal at this level to our first support level of 0.71963. It is worth noting that the Stochastic (21,5,3) is showing bearish momentum where price has previously rejected 92% level.

Pivot: 0.71588
Why we like it:
61.8% Fibonacci retracement, 61.8% Fibonacci extension and horizontal graphical overlap resistance

1st Support: 0.70899
Why we like it:
50% Fibonacci retracement, 127.2% Fibonacci extension and horizontal graphical overlap support.

1st Resistance: 0.71905
Why we like it:
88% Fibonacci extension and 78.6% Fibonacci retracement and horizontal graphical resistance.

Trading FX & CFDs carries high risk.

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