From a technical point of view, on a daily chart, EUR/USD still stands above its 50-day moving average . Readers may therefore consider the potential for further advance above 1.1605. The nearest threshold would be set at September top at 1.2015 and a second one would be set at previous overlap at 1.2150.
Pound (1.3391) has risen to test immediate resistance near 1.34 and while that sustains, a fall towards 1.33-1.32 could be seen in the near term. Only a continued fall in Dollar Index if seen below 91.75, could leave scope for Pound to break above 1.34 and head higher towards 1.36 in the longer run.
USD/JPY remains neutral first. The pair is staying inside falling channel, and below 55 day EMA. Down trend from 111.71 is expected to continue as long as 105.67 resistance holds. On the downside, below 103.65 minor support will bring retest of 103.17 low.
From a technical perspective, AUD/USD rates look poised to challenge the yearly high, after slicing through key psychological resistance at 0.7300. With the RSI eyeing a push into overbought territory and the MACD indicator storming to its highest levels since early September, the path of least resistance seems to favour the upside. Ultimately, a daily close above the September high (0.7413) is needed to signal a resumption of the uptrend extending from the March nadir and open the door for prices to challenge the 78.6% Fibonacci (0.7573). Conversely, slipping back below September 16 high (0.7345) could neutralize near-term buying pressure and generate a pullback towards confluent support at the 100-day moving average and 61.8% Fibonacci (0.7131).
USD/CAD consolidates the weekly losses while regaining the 1.3000 threshold early on Thursday. The pair dropped to the lowest in two weeks the previous day, before bouncing off 1.2986. As a result, the region between 1.2985 and 1.3000, including lows marked since September 01, except for the current month’s downtick, becomes the key support to watch for USD/CAD traders. Considering the pair’s latest pullback moves, November 17 low near 1.3035 appears as an immediate target for the USD/CAD buyers. However, a joint of short-term SMA and a descending trend line from November 02, near 1.3060/65 becomes the key resistance to watch afterward.Hence, a downside break of 1.2985 is what they’re targeting before looking at the monthly bottom around 1.2930.
Crude oil price surpassed many hurdles near $42.00 to move into a positive zone. The price traded above the $45.00 level, but there is a crucial resistance waiting for buyers near the $50.00 level. The 100-week simple moving average is at $47.50 and the 200-week simple moving average is at $52.50. It seems like there are many hurdles, starting with $47.50 and up to $55.00. A clear break above $55.00 might set the tone for a push towards the $65.65 swing high. If not, the price might start a downside correction towards the $40.00 support. Fundamentally, the US Gross Domestic Product report for Q3 2020 (Prelim) was released yesterday by the US Bureau of Economic Analysis. The market was looking for a strong growth of 33.2%.
Gold has bounced from immediate support at 1800 mentioned yesterday and while that holds, we may expect a test of 1850/60 on the upside before another attempt to dip back towards 1800 or lower is seen. Immediate view is bullish while above support at 1800 but in the medium term we cannot negate a dip to levels below 1800 while resistance near 1860 holds.
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