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.
GBP/USD broke a major hurdle near 1.3300 to move further into a positive zone. The pair traded close to the 1.3400 level before correcting lower sharply. On the upside, 1.3400 level is a strong barrier. The next key resistance is near 1.3420, above which the bulls might aim a test of the 1.3500 resistance. If there is a fresh downside correction, the recent breakout resistances near 1.3310 and 1.3300 are likely to act as strong supports. Fundamentally, the US Manufacturing PMI for Nov 2020 (Preliminary) was released yesterday by both the Chartered Institute of Purchasing & Supply and Market Economics. The market was looking for a drop from 53.7 to 50.5. The actual result was positive, as the UK Manufacturing PMI increased from 53.7 to 55.2. However, the UK Services PMI came in at 45.8, down from the last 51.4.
USD/JPY’s strong rebound and breach of 104.56 minor resistance suggests that pull back from 105.67 has completed. Intraday bias is back on the upside for 105.67 resistance. On the downside, below 103.65 minor support will bring retest of 103.17 low. Overall, USD/JPY 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..
AUD/USD is still bounded in range below 0.7339 temporary top and intraday bias remains neutral first. Further rise is in favor with 0.7221 support intact. Consolidation pattern from 0.7413 should have completed with three waves to 0.6991. Above 0.7339 will target a test on 0.7413 first. On the downside, break of 0.7221 minor support would likely extend the consolidation pattern from 0.7413 with another falling leg.
The USD/CAD pair traded with a negative bias through the early European session and was last seen flirting with a strong horizontal support, around the 1.3045-40 region. From a technical perspective, sustained weakness below the 1.3040 support zone will be seen as a fresh trigger for bearish traders and turn the USD/CAD pair vulnerable to break below the key 1.3000 psychological mark. The downward trajectory could further get extended towards monthly swing lows, around the 1.2930-25 region.
The August month’s peak and February low, respectively near $43.85 and $43.95, offer immediate resistance to the energy benchmark targeting $44.00. Though, any further upside won’t refrain from challenging March’s top near $48.75.
Gold prices fell to a 4-month low of US$ 1,825, primarily weighed by a string of positive vaccine news that raised prospects for a faster pace of economic recovery and thus less reliance on stimulus. Prices have likely broken a key support level at US$ 1,870 and thus may open the door for further downside potential with an eye on 1,809. Technically, gold prices entered a three-month consolidation after reaching an all-time high in early August. The overall trend appears to bias toward the downside, as suggested by the formation of consecutive lower highs and lower lows. A decisive break below the US$ 1,870 support may lead to further losses with an eye on US$ 1,809 – a key support level.
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