LOOMING BREXIT DEADLINE TO WEIGH ON GBP

The politically-sensitive British Pound may come under pressure in the coming days, as negotiators from the UK and EU scramble to deliver a Free Trade Agreement (FTA) before the proposed Brexit deadline on November 15. Prime Minister Boris Johnson believes a deal is “there to be done [and] the broad outlines are pretty clear”, adding that “I’ve always been a great enthusiast for a trade deal with our European friends and partners”. However, European Commission President Ursula von der Leyen doesn’t seem to share Mr. Johnson’s optimistic outlook, stating that although “some progress has been made, large differences remain especially on level playing field and fisheries”..

EURUSD

The Euro formed a support base near 1.1600 before starting a fresh increase against the US Dollar. EUR/USD surged above 1.1800 and traded to a new two-month high. Looking at the 4-hours chart, the pair gained pace after it broke the 1.1750 resistance and a connecting bearish trend line. There was a proper close above the 1.1800 zone, the 100 simple moving average (4-hours), and the 200 simple moving average (4-hours). The pair even climbed above the 76.4% Fib retracement level of the downward move from the 1.1880 high to 1.1602 low. The current price action suggests that the pair is likely to continue higher above the 1.1900 resistance. The next resistance could be near 1.1945 or the 1.236 Fib extension level of the downward move from the 1.1880 high to 1.1602 low. If there is a downside correction, the pair could find support near the 1.1840 level. The main support is now forming near the 1.1750 level and the 100 simple moving average (4-hours).

GBPUSD

GBP/USD’s break of 1.3175 resistance suggests resumption of rebound from 1.2675. Intraday bias is now on the upside. Break of near term channel resistance (now at 1.3252) will indicate upside acceleration and pave the way to retest 1.3482 high. On the downside, break of 1.3092 support will mix up the near term outlook and turn intraday bias neutral again.support’ level) within these few days. Looking ahead, the next resistance above 1.3200 is at 1.3255 followed by 1.3300.

USDJPY

USD/JPY remains on the downside for the moment. Current down trend would target 161.8% projection of 106.10 to 104.02 from 105.34 at 101.97 on next fall. On the upside, above 104.02 support turned resistance will turn intraday bias neutral first. But overall near term outlook will remain bearish as long as 105.34 resistance holds.

AUDUSD

USD/JPY remains on the downside for the moment. Current down trend would target 161.8% projection of 106.10 to 104.02 from 105.34 at 101.97 on next fall. On the upside, above 104.02 support turned resistance will turn intraday bias neutral first. But overall near term outlook will remain bearish as long as 105.34 resistance holds.

USDCAD

An ascending trend line from December 31, 2019 and September month’s low, respectively around 1.3000 and 1.2995, restrict the pair’s short-term downside. Meanwhile, an upside clearance of the 1.3100 immediate resistance can escalate the corrective recovery towards the mid-October top near 1.3260.

WTI

Technically WTI crude oil prices were trading between a range of US$ 34.00 – 41.00 over the past two months, with the overall trend biased towards the downside. Immediate resistance levels can be found at US$ 39.30 – the 50-Day Simple Moving Average (SMA) line, followed by US$ 41.00. Immediate support levels can be found at US$ 36.42 – the 23.6% Fibonacci retracement, followed by US$ 35.00 – the lower Bollinger Band.

XAUUSD

Technical Gold shows that the yellow metal remains on track to test the critical resistance at $1965, which is the pivot point one-month R2. Ahead of that level, the confluence of the previous day high and Bollinger Band one-hour Upper at $1961 could challenge the bulls’ commitment. Should the XAU bulls recapture the $1965 hurdle, the next upside target is seen at $1975, which is the intersection of the pivot point one-day S2 and Bollinger Band four-hour Upper. Further up, $1980 is the level to beat for the bulls. That level is the Fibonacci 161.8% one-month. Alternatively, a stack of healthy support levels is found $1953-51 levels, which could continue to guard the downside. Acceptance below the SMA10 four-hour at $1950 is needed to fuel a corrective decline towards $1947, the convergence of the Fibonacci 61.8% one-day and Bollinger Band one-day Upper. The next downside target is aligned at $1940, where the Fibonacci 23.6% one-week awaits. The $1934 strong support, the previous month high, will be a tough nut to crack for the sellers.