Home Forex News Vantage FX Market Outlook for 6th Nov 2020

Vantage FX Market Outlook for 6th Nov 2020

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#CrudeOil #Oil prices fell lower overnight yet again amid escalating number of virus cases, a strengthening USD and a tight head-to-head US presidential election. The only light at the end of the tunnel for higher oil prices would be that OPEC+ alliance leaders, Saudi Arabia and Russia are pressuring member countries to extend their current supply cuts into next year and keep to it. Traders should note that this could only be a short term solution as long term demand for oil looks gloomy. WTI dropped by 1.7% at the start of the Asian trading session, whilst Brent dropped by 1.6%.

#Risk sentiment Risk sentiment was mixed on Friday as the global equity rally showed signs of stalling. Nasdaq futures unwound some of this week’s surge amid the ongoing U.S. election count. The S&P 500 climbed almost 2% Thursday and is headed for its best week since April. The tech-heavy Nasdaq 100 is up over 9% this week. The market is currently watching the possibility that Trump might turn this into a legal lawsuit, where the final decisions might only come in weeks.

#DXY USD edged up from its lowest point in two years. On Thursday, Powell opened the door to a possible shift in the central bank bond purchases in coming months, claiming that more monetary and fiscal support are needed. Lower bond yields will reduce the attractiveness of U.S. assets. USD might still continue its downward path.

#Gold prices surged higher, rising 2.3%, buoyed by a weaker USD. Leading up to the elections, Gold has been under pressure, weighed down by the a recovery in the USD. Looking ahead, gold could see further upside as the dollar-denominated asset benefits from a weaker USD, after the Fed kept interest rates unchanged along with expectations of the fiscal stimulus package.

#NZDUSD, H4 is reversing to our Pivot point. Potential for a rise.

Description:

Price is reversing towards our Pivot point of 0.67166, which is in line with 50%, 61.8% Fibonacci extension, 38.2% Fibonacci retracement and horizontal graphical overlap, where we could see a potential rise from this level to our first resistance level of 0.67937, in line with horizontal swing high resistance. It is worth noting that the Ichimoku Cloud and MACD are both showing bullish momentum which is in line with our analysis.

Pivot: 0.67166
Why we like it:
50%, 61.8% Fibonacci extension, 38.2% Fibonacci retracement and horizontal graphical overlap

1st Support: 0.66776
Why we like it:
61.8% Fibonacci extension and 78.6% Fibonacci retracement

1st Resistance: 0.67937
Why we like it:
Horizontal swing high resistance

Trading FX & CFDs carries high risk.

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

Description:

Price is currently heading towards our Pivot point at 1.31315, which is in line with 61.8%, 50% Fibonacci extension, 38.2% Fibonacci retracement and Horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 1.30290. It is worth noting that the MACD and Ichimoku Cloud are showing bearish pressure.

Pivot: 1.31315
Why we like it:
61.8%, 50% Fibonacci extension, 38.2% Fibonacci retracement and Horizontal graphical overlap

1st Support: 1.30290
Why we like it:
100% Fibonacci extension and Horizontal graphical support

1st Resistance: 1.31985
Why we like it:
61.8%, 78.6% Fibonacci extension, 50% Fibonacci retracement and horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point at 1927.82 which is in line with our 38.2% Fibonacci retracement and horizontal graphical overlap. We could potentially see price rise towards our 1st resistance level at 1955.14, which is in line with 127.7% Fibonacci extension and Horizontal graphical level. It is worth noting that MACD and Ichimoku cloud are showing bulliish momentum.

Pivot: 1927.82
Why we like it:
38.2% Fibonacci retracement and horizontal graphical overlap

1st Support: 1908.66
Why we like it:
61.8% Fibonacci extension, 50% Fibonacci retracement and Horizontal graphical level

1st Resistance: 1955.14
Why we like it:
127.7% Fibonacci extension and Horizontal graphical level

Trading FX & CFDs carries high risk.

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

Description:

Price is approaching our Pivot point of 0.71997, which is in line with our 61.8%, 78.6% 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 0.73289, in line with 127.2% Fibonacci extension, -27% Fibonacci retracement and horizontal swing high resistance. It is worth noting that the MACD and Ichimoku cloud are both showing bullish momentum which is in line with our analysis.

Pivot: 0.71997
Why we like it:
61.8%, 78.6% Fibonacci retracement, 38.2% Fibonacci extension and horizontal graphical overlap

1st Support: 0.71429
Why we like it:
61.8% Fibonacci retracement and horizontal swing low support

1st Resistance: 0.73289
Why we like it:
127.2% Fibonacci extension, -27% Fibonacci retracement and horizontal swing high resistance

Trading FX & CFDs carries high risk.

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