Home Forex News Vantage FX Market Outlook for 5th Nov 2020

Vantage FX Market Outlook for 5th Nov 2020

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#CrudeOil #Oil Price dipped at the start of the Asian trading session after jumping the highest on Wed. Traders have been pricing in an increasing probability of the scenario where Joe Biden wins the US presidential election. With no clear and final decision on the US election at the time of writing, demand outlook for oil still looks grim against the backdrop of the virus that is still raging on. WTI dropped by 1.8% at the start of the Asian trading session, whilst Brent dropped by 1.7%.

#Risk sentiment Risk sentiment went steady on Thursday alongside the commodity market as Asian technology and healthcare firms are leading a jump. However, gains were less pronounced than their U.S. counterpart. Joe Biden has won Michigan and Wisconsin and millions of votes are still being counted with the presidential outcome may not be decided for days. Right now the market is foreseeing a narrow victory with a split legislature, which could make corporate tax cuts rolling back unlikely. The stock market is so far cheered up by this prospect.

#DXY USD dropped as the U.S. stock market went higher on Wednesday night. The market is repricing the technology sector as the dimmed chance of “a Blue sweep” could ease the burden of regulations on the tech sector. At the same time, this outcome could also make a massive fiscal stimulus package unlikely, which could relieve USD of some bearish pressure.

#Gold

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

Description:

Price is reversing from our Pivot point at 1.17422, which is in line with our 50%, 78.6% Fibonacci retracement. We could potentially see price drop from this level towards our 1st support at 1.16582. It’s worth noting the Ichimoku cloud, EMA (89) and descending trendline resistance are showing bearish momentum

Pivot: 1.17422
Why we like it:
50%, 78.6% Fibonacci retracement and descending trendline resistance.

1st Support: 1.17417
Why we like it:
61.8% Fibonacci retracement, 61.8% Fibonacci extension and horizontal graphical overlap.

1st Resistance: 1.17760
Why we like it:
61.8% Fibonacci retracement, 88% Fibonacci extension and horizontal swing high resistance

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 1.29652, which is in line with our 61.8% Fibonacci retracement. We could potentially see the price drop towards our 1st support level at 1.28865. It’s worth noting that Stochastics (13,5,3) is showing bearish pressure where price has previously reversed off the 81% level. Lastly the Ichimoku cloud is also showing bearish pressure in line with our analysis.

Pivot: 1.29652
Why we like it:
61.8% Fibonacci retracement.

1st Support: 1.28865
Why we like it:
88.6% Fibonacci Retracement, 78.6% Fibonacci extension and Horizontal graphical support.

1st Resistance: 1.30536
Why we like it:
50% Fibonacci extension, 61.8% Fibonacci Retracement and Horizontal graphical resistance

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point at 104.528 which is in line with our 61.8% Fibonacci Retracement and 50% Fibonacci extension. We could potentially see price drop towards our 1st support level at 103.675. It is worth noting that price is trending within a bearish channel and Ichimoku cloud is also showing bearish pressure.

Pivot: 103.989
Why we like it:
61.8% Fibonacci Retracement and 50% Fibonacci extension.

1st Support: 103.675
Why we like it:
127.2% Fibonacci retracement, 100% Fibonacci extension

1st Resistance: 104.885
Why we like it:
38.2%, 50% 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 0.91006, which is in line with our 61.8% Fibonacci Retracement, Retest of descending trendline breakout and horizontal graphical level. Price could potentially rise towards our 1st resistance level at 0.91995. It’s worth noting that price has broken out of the descending trendline and is currently facing bullish pressure from the Ichimoku cloud as well.

Pivot: 0.91006
Why we like it:
61.8% Fibonacci Retracement, Retest of descending trendline breakout and horizontal graphical level

1st Support: 0.90708
Why we like it:
78.6% Fibonacci retracement.

1st Resistance: 0.91995
Why we like it:
61.8% Fibonacci extension, 61.8% Fibonacci retracement and horizontal graphical resistance

Trading FX & CFDs carries high risk.

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