[email protected]
+44 7862 068336
Open Live Account Open Demo Account Client Login Partners Login Download MT4 Contact Us
cfm-footer-logo-whitecfm-footer-logo-whitecfm-footer-logo-whitecfm-footer-logo-white
  • About Us
    • CF Merchants
    • Why Choose Us
    • Registering Bodies
    • Security of Funds
    • Legal Documents
  • Trading
    • Products
      • Forex
      • Commodities
      • CFDs
      • INDICES
      • Cryptocurrencies
    • Platform
      • META TRADER 4
    • Pricing
      • Product Knowledge
      • Trading Hours
      • Execution Policy
      • Expiration of CFD’s
  • Accounts
    • Accounts Comparison
    • Islamic Accounts
    • Deposit & Withdrawals
  • Research & Education
    • CFM Academy
      • What is Forex?
      • E-Book
      • Forex Glossary
    • News
      • Forex News
      • Crypto News
      • Education News
    • Market
      • Economic Calendar
      • Market Analysis
  • Promotions
    • 50% Deposit Bonus
  • Partnership
  • Contact Us
✕
  • Home
  • Company News
  • Daily Market Analysis
Daily Market Analysis
October 2, 2020
Daily Market Analysis
October 6, 2020
Published by CF Merchants on October 5, 2020
Categories
  • Company News
  • Market Analysis
Tags

EURUSD

EURUSD continues to face risk of further upside pressure as we enter a new week. Resistance comes in at the 1.1750 with a break of that area turning risk towards the 1.1800 level. A move above here will target the 1.1850 level. Further up, resistance stands at the 1.1800. On the down, support comes in at 1.1700 levels with a violation opening the door for a run at the 1.1650 level. Further down, support is seen at the 1.1600 level. A cut through that level will clear the way for a move towards the 1.1550 level. All in all, EURUSD looks for more upside pressure.

GBPUSD

The British pound sterling recovered from the losses in the week before, by closing last week with gains. Price action remains flat both on the weekly charts as well as on the 4-hour chart time frame. Trading within the 1.3000 and the 1.2750 levels, a breakout is likely to occur in the medium term. The flat price action reflects a number of underlying factors including the uncertain outlook of the economy and the Brexit trade talks. In the short term, the cable is likely to maintain this range. A breakout from the range is likely to coincide with some major fundamentals driving price action. To the downside, a close below 1.2750 will open the way for price to test 1.2516. To the upside, above 1.3000, we expect the resistance level at 1.3122 to hold.

USDJPY

Intraday bias in USD/JPY remains neutral for the moment. On the upside, break of 105.80 will resume the rebound from 104.00 to 106.94 resistances next. on the downside, break of 104.92 will suggest completion of rebound from 104.00. Intraday bias will be turned back to the downside for retesting this low. In the other picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016). Hence, there is no clear indication of trend reversal yet. The down trend could still extend through 101.18 low. However, sustained break of 112.22 resistances should confirm completion of the down trend and turn outlook bullish for 118.65 and above.

AUDUSD

Today AUD/USD remains neutral first. On the upside, break of 0.7209 and sustained trading above 0.7192 should confirm completion of the pull back from 0.7413. Further rise should be seen back to retest 0.7413 high. On the downside, break of 0.7005 will resume the correction to 38.2% retracement of 0.5506 to 0.7413 at 0.6685. On the other hand, while rebound from 0.5506 was strong, there is not enough evidence to confirm bullish trend reversal yet. That is, it could be just a corrective inside the long term up trend. Sustained trading back below 55 week EMA (now at 0.6896) will favor the bearish case and argue that the rebound has completed. Focus will be turned back to 0.5506 low. On the upside, break of 0.7413 will extend the rise from 0.5506 to 38.2% retracement of 1.1079 (2011 high) to 0.5506 (2020 low) at 0.7635.

USDCAD

Intraday bias in USD/CAD remains neutral for the moment. Further rise is mildly in favor with 1.3259 resistances turned support intact. On the upside, break of 1.3418 will resume the rebound from 1.2994. Such rebound is seen as a correction to whole fall from 1.4667 and should then target 38.2% retracement of 1.4667 to 1.2994 at 1.3633. Nevertheless, on the downside, sustained break of 1.3259 will argue that the rebound is completed and turn bias back to the downside for retesting 1.2994 low. On the other hand, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). Sustained break of 61.8% retracement of 1.2061 to 1.4667 at 1.3056 will target a test on 1.2061 (2017 low). But we’d expect loss of downside momentum as it approaches this key support. On the upside, firm break of 1.3715 resistance will argue that this falling leg has completed and turn focus back to 1.4667/89 resistance zone.

XAUUSD

Total gold held by ETFs rose 34% this year to 110.90 million ounces as of October 1, approaching the record high level, according to Bloomberg’s data. Besides, the net long position of gold futures was down 1.6% on week to 128,953 contracts as of September 29, according to the Commodity Futures Trading Commission. From a technical point of view, spot gold posted a rebound from $1,848 after breaking a symmetric triangle on a daily chart. Currently, gold prices are trading below the declining 20-day moving average. The relative strength index is also below its neutrality level at 50, suggesting the lack of upward momentum. Bearish readers could set the resistance level at $1,935, while support levels would be located at $1,848 and $1,815 respectively

WTI

Oil prices continue to move lower, marking a second consecutive week of declines. Following the breakdown below the 38.83 level of support, oil prices are now trading close to the 36.5 level of support. A retest of this support is inevitable, but it could offer temporary relief for prices from falling further. If there is a bounce off this lower support area, we could see some sideways movement between 36.50 and 38.83. But a close below the 36.50 level of support could signal further declines. The upside remains weak for the moment. Any gains could see the 38.83 level coming in as resistance and putting a lid on any further gains.

Share
2
CF Merchants
CF Merchants

Related posts

May 7, 2021

Dollar under pressure as U.S. payrolls data could spur more risk-taking


Read more
May 6, 2021

Dollar holds near two-week high, U.S. jobs data eyed for Fed clues


Read more
May 5, 2021

Asia Shares Subdued By Tech Retreat, U.s. Futures Steady


Read more

Leave a Reply Cancel reply

You must be logged in to post a comment.

[email protected]
[email protected]
+44 7862 068336

    Legal: CF Merchants is the trading name of Commodity and Forex Merchants registered and regulated in many Jurisdictions. CF Merchants Limited is regulated with license number 24535/2018, at Suite 305, Griffith Corporate Center, P. O. Box 1510, Beachmont, Kingstown, Saint Vincent and the Grenadines as an International Broker Company under the company act of Saint Vincent & the Grenadines. The objects of the Company are all subject matters not forbidden by International Business Companies (Amendments and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines 2009, in particular but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well to provide brokerage, training and managed account services in currencies, commodities, indexes and leveraged financial instruments.
    Commodity and Forex Merchants Limited is authorized under license number 1092420 by the Companies House, Cardiff, United Kingdom on 21st August 2017.

    High Risk Investment Warning: Margin FX are leveraged products that carry an extraordinary level of risk to your funds. Trading is not suitable for everyone and may result in you losing significantly more than your investments and therefore, you should not speculate with capital that you cannot afford to lose. You should consider whether you understand how this work and whether you can afford to take the high risk of losing your money. All the trading related information on this website is general in nature and does not take into account your or your client’s personal intentions, financial conditions and needs. We encourage you to seek independent advice if necessary. It is the responsibility of the client to ascertain whether he/she is allowed to use the services of the CF Merchants based on the legal requirements in his/her country of residence. Please read full Risk Disclaimer for more details.

    Regional Restrictions: CF Merchants (SV) Ltd does not provide services and accept applications from the residents of certain countries, such as United States of America, Canada, Israel, North Korea and Saint Vincent & The Grenadines. The statistics on this website is not directed at residents in any country or jurisdiction where such distribution or use would be contradictory to local law or regulation.

    © 2011-2020 CF Merchants Ltd.

    • Terms & Conditions
    • Privacy Policy
    • Fraud Warning
    • Risk Disclosure
    • AML Policy
    • Client Agreement
    • IB Agreement
    • Power of Attorney