On Wednesday, the EUR/USD currency pair tested the support provided by the 200-hour SMA near 1.1760. It is likely that the exchange rate could remain under pressure of the 100-hour moving average near 1.1830. Thus, some downside potential could prevail in the market, and the rate could target the support formed by the Fibo 61.80% and the weekly S1 in the 1.1700 area. In the meantime, note that the currency pair could gain support from the 55-hour moving average near 1.1800 and trade upwards in the short term. A possible upside target is the 1.1880 mark.
GBP/USD is trading below 1.32, under pressure. UK GDP missed estimates with 15.5% QoQ in the third quarter. Concerns about coronavirus have replaced vaccine hopes and boost the safe-haven dollar. The GBP/USD pair bottomed for the day at 1.3191 and trades nearby ahead of the Asian opening. The 4-hour chart shows that it´s struggling to remain above a mildly bullish 20 SMA, which remains well above the larger ones. Technical indicators eased from daily highs but hold within positive levels, the Momentum stable and the RSI heading lower, skewing the risk to the downside. Support levels: 1.3185 1.3140 1.2990 Resistance levels: 1.3280 1.3335 1.3380
USD/JPY remains pressured below 105.50, easing from three-week top flashed on Wednesday. The US dollar loses ground across the board amid higher Asian equities. Hopes of further stimulus, virus vaccine combat the jump in the US infections. The USD/JPY pair has room to extend its advance towards the 106.00 price zone, as the 4-hour chart shows that the 200 SMA continued to provide support, while the 20 SMA crossed above the 100 SMA, both below the larger one. The Momentum indicator eased within positive territory, rather reflecting the lack of progress than suggesting an upcoming decline. The RSI indicator continues consolidating near overbought readings. Support levels: 105.20 104.90 104.50 Resistance levels: 105.65 106.00 106.40
AUD/USD returns to the red, extending losses towards 0.7250, as markets turn cautiously optimistic amid surging coronavirus cases in the US and vaccine hopes. AUD/USD's daily chart shows signs of buyer fatigue. The AUD/USD pair peaked this week at 0.7288, its highest level since September, thanks to the broad greenback’s sell-off within the US presidential election context.
USD/CAD continued gaining positive traction for the third consecutive session on Thursday. A softer risk tone benefitted the safe-haven USD and remained supportive of the momentum. The Canadian dollar eked out a small gain this week, but broke no new ground and ended near the bottom of its October range. Opening on Monday at 1.3189, Tuesday’s finish at 1.3128 defined the rest of the week.
WTI prints four-day winning streak after refreshing two-month high the previous day. Saudi Arabia stands ready to balance the oil market, cited covid burden on demand, OPEC+ looks to delay supply increase. US dollar strength, cautious sentiment challenge the upside moves. Both crude benchmarks are catching fresh bids on the likely OPEC+ oil output cuts extension, with WTI looking to regain $42, adding 1.05% so far. Meanwhile, Brent rallies 1% to trade around $44.20 levels.
Gold consolidates its recovery gains below $1875 amid mixed market sentiment. Gold fell by over 4.5% on Monday and could suffer deeper declines in the next few weeks as the US fiscal imprudence and hopes for coronavirus vaccine could drive Treasury yields higher. Gold started the week on a strong footing and preserved its bullish momentum with the USD struggling to find demand throughout the week. After advancing to its highest level in nearly two months at $1,960, XAU/USD retreated slightly amid profit-taking late Friday but gained nearly 4% for the week to close near $1,950.
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.