Home Forex News Vantage FX Market Outlook for 3rd Nov 2020

Vantage FX Market Outlook for 3rd Nov 2020

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#CrudeOil #Oil pushed higher overnight on a surprise announcement that OPEC+ will be delaying a planned easing of output cuts. At the start of the Asian trading session, oil continues to hold steady its overnight gains. This rise in oil might be short-lived however as the 3rd wave of virus outbreak continues to rattle multiple economics worldwide. The rest of this week also sees alot of hesitation as Americans head to the polls for the presidential election. WTI dipped by 0.2% at the start of the Asian trading session while Brent is down by 0.4%.

#Risk sentiment Risk sentiment went higher on Tuesday as U.S. futures and Asian stocks rose Tuesday ahead of the presidential election. With one day away from the election day, the market is expecting that the results might take days to come. In the meantime, investors are fretting about the possibility the outcome will be contested, which means a clear winner might not emerge for some time, weighing on market sentiment.

#DXY USD reversed, as the latest polls still lead to 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. But with a higher proportion of mail votes this year, the results of the votes might take a few days to come. We might still witness USD volatility in coming days this week.

#Gold prices held on to gains with little reaction to significantly better-than-expected sentiment in the U.S. manufacturing sector, according to the latest data from the Institute for Supply Management (ISM). The ISM said its manufacturing index showed a reading of 59.3% for October, up from September’s reading of 55.4% and beating expectations. “The manufacturing economy continued its recovery in October. Survey Committee members reported that their companies and suppliers continue to operate in reconfigured factories; with every month, they are becoming more proficient at expanding output,” said Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee, in a statement. This could help to boost the market risk sentiment, pushing gold prices lower

#EURUSD, H4 is reversing from our Pivot point. Potential for a bounce.

Description:

Price is reversing from our Pivot point at 1.16338, which is in line with our 127% Fibonacci extension, and horizontal graphical overlap. We could potentially see price rise from this level towards our 1st resistance at 1.17215. It’s worth noting Stochastic Oscillator (21,5,3) is showing bullish momentum where price has previously bounced off the 8% level.

Pivot: 1.16495
Why we like it:
127% Fibonacci extension, and horizontal graphical overlap

1st Support: 1.15666
Why we like it:
-27% Fibonacci retracement, 161.8% Fibonacci extension

1st Resistance: 1.17215
Why we like it:
50% Fibonacci retracement, 38.2% Fibonacci extension and horizontal graphical overlap

Trading FX & CFDs carries high risk.

#GBPUSD, H4 is reversing from our Pivot point, potential for a drop.

Description:

Price is reversing from our Pivot point at 1.29355, which is in line with our 61.8%, 23.6% Fibonacci retracement, 78.6% Fibonacci extension and horizontal graphical overlap. We could potentially see the price drop towards our 1st support level at 1.28633. It’s worth noting that price is currently trending in a descending channel and Ichimoku Cloud is showing bearish pressure in line with our analysis.

Pivot: 1.29355
Why we like it:
61.8%, 23.6% Fibonacci retracement, 78.6% Fibonacci extension and horizontal graphical overlap

1st Support: 1.28633
Why we like it:
88.6% Fibonacci Retracement and Horizontal graphical support.

1st Resistance: 1.29825
Why we like it:
61.8% Fibonacci extension, 78.6% Fibonacci Retracement and Horizontal graphical resistance

Trading FX & CFDs carries high risk.

#USDJPY, H4 is reversing from our Pivot point, potential for a drop.

Description:

Price is reversing from our Pivot point at 104.911 which is in line with our 50%, 78.6% Fibonacci Retracement, 127.2% Fibonacci extension and horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 104.304. It is worth noting that the Stochastics (21,5,3) is showing bearish pressure where price has previously reversed off the 87% level. Lastly, the Ichimoku cloud is also showing bearish pressure.

Pivot: 104.911
Why we like it:
50%, 78.6% Fibonacci Retracement, 127.2% Fibonacci extension and horizontal graphical overlap

1st Support: 104.304
Why we like it:
78.6% Fibonacci retracement, 61.8% Fibonacci extension

1st Resistance: 104.527
Why we like it:
61.8% Fibonacci retracement and Horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point at 0.91840, which is in line with the previous horizontal graphical level. Price could potentially drop towards our 1st support level at 0.91412, which is in line with our 38.2%, 78.6% Fibonacci retracement, 50% Fibonacci extension and horizontal graphical level of support. It’s worth noting that Stochastics (21,5,3) is showing bearish pressure where price has previously reversed off the 79% level.

Pivot: 0.91840
Why we like it:
Horizontal graphical level

1st Support: 0.91412
Why we like it:
38.2%, 78.6% Fibonacci retracement, 50% Fibonacci extension and horizontal graphical level of support

1st Resistance: 0.92027
Why we like it:
61.8%, 127.2% Fibonacci retracement, 76.4% Fibonacci extension and horizontal graphical resistance

Trading FX & CFDs carries high risk.

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