Home Forex News Vantage FX Market Outlook for 2nd Nov 2020

Vantage FX Market Outlook for 2nd Nov 2020

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#DXY USD is strengthening, reflecting doubts about a Biden winning story. If Biden wins, the market is expecting a larger fiscal stimulus, which could translate into more government borrowing. In such scenarios, USD is likely to go lower. Elsewhere, concern that economic growth will be hampered by further lockdown measures in Europe helped buoy USD. USD could steady or even appreciate as market mulls uncertainties ahead.

#CrudeOil #Oil Oil started the week by plunging to a 5-month low. This reportedly comes on the back of a further increase in Libyan crude oil production coupled with a new and more violent wave of virus infection rate that is quickly growing across multiple economies globally. Further as America prepares to vote this coming Tuesday, the results of which would have far reaching impact across multiple asset classes. WTI fell by about 3.5% at the start of the Asian trading session while Brent is down by 2%.

#Risk sentiment Risk appetite is a bit muted on Monday with the commodity market steady there. Asian stocks climbed in a volatile start to a crucial week spanning the U.S. election and a Federal Reserve policy meeting, events that could set the tone for financial markets for the rest of the year. The main event this week will be Tuesday’s U.S. election, with Democratic nominee Joe Biden leading President Donald Trump in polls. Virus developments are also front and centre with the recent surge in U.S. cases showing signs of slowing over the weekend.

#Gold prices tumbled lower on Monday, weighed down by the recovery of the Dollar as investors awaited the outcome of the US presidential election on 3rd November. Elsewhere, according to Reuters, speculators cut their net long position by 3,702 contracts to 131,609 in COMEX gold in the week to October 27, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

#NZDUSD, H4 is bouncing from our Pivot point. Potential for a rise.

Description:

Price is bouncing from our Pivot point of 0.66000, which is in line with our 78.6% Fibonacci retracement, 100% Fibonacci extension, and horizontal graphical overlap, where we could see a potential rise from this level to our first resistance level of 0.66602, in line with 38.2% Fibonacci extension and 38.2%, 50% Fibonacci retracement. It is worth noting that the Stochastic Oscillator (21,5,3) is showing bullish pressure where price has previously bounced off the 13% level. Lastly, price has been trending within a bullish channel which is in line with our bullish view.

Pivot: 0.66000
Why we like it:
78.6% Fibonacci retracement, 100% Fibonacci extension, and horizontal graphical overlap.

1st Support: 0.65582
Why we like it:
Horizontal graphical swing low support.

1st Resistance: 0.66602
Why we like it:
38.2% Fibonacci extension and 38.2%, 50% Fibonacci retracement.

Trading FX & CFDs carries high risk.

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

Description:

Price is currently breaking above our Pivot point at 1.33375, which is in line with 76.4%, 50% Fibonacci retracement and Horizontal graphical overlap. We could potentially see price rise towards our 1st resistance level at 1.34331. It is worth noting that the MACD, Ichimoku Cloud and Ascending trendline are showing bullish pressure.

Pivot: 1.33375
Why we like it:
76.4%, 50% Fibonacci retracement and Horizontal graphical overlap

1st Support: 1.32798
Why we like it:
38.2% Fibonacci retracement, 61.8% Fibonacci extension and Horizontal graphical support

1st Resistance: 1.34331
Why we like it:
127% Fibonacci retracement, 61.8% Fibonacci extension and Horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point at 1892.22 which is in line with our 161.8% Fibonacci retracement, descending trendline resistance and horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 1867.15, which is in line with 78.6% Fibonacci retracement and Horizontal graphical level. It is worth noting that Stochastic (21,5,3) is showing bearish pressure where price previously reacted off the 77% level. Lastly, the Ichimoku Cloud and Descending trendline are showing bearish pressure.

Pivot: 1892.22
Why we like it:
161.8% Fibonacci retracement, descending trendline resistance and horizontal graphical overlap

1st Support: 1867.15
Why we like it:
78.6% Fibonacci retracement and Horizontal graphical support

1st Resistance: 1900.21
Why we like it:
78.6% Fibonacci extension and Horizontal graphical resistance.

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 0.70192, which is in line with our 61.8% Fibonacci retracement and horizontal graphical overlap, where we could see a potential break and retest at this level to our first support level of 0.69345, in line with 100% Fibonacci extension and horizontal swing low support. It is worth noting that the MACD and Ichomoku cloud are both showing bearish momentum which is in line with our analysis.

Pivot: 0.70192
Why we like it:
61.8% Fibonacci retracement and horizontal graphical overlap

1st Support: 0.69345
Why we like it:
100% Fibonacci extension and horizontal swing low support

1st Resistance: 0.70612
Why we like it:
38.2%, Fibonacci retracement and horizontal graphical overlap

Trading FX & CFDs carries high risk.

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