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.
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