Wed, Dec 02, 2020 @ 00:15 GMT
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Crude Oil Resuming the Uptrend

Crude oil has found support at the 33.8 level, after a completed three-wave corrective move in 2)/B), and started recovering impulsively. Price broke above the upper corrective channel line, which is another evidence that energy is resuming the uptrend and unfolding a higher degree wave 3)/C) with a five-wave...

Optimism Flowing Once Again

That good feeling is back in the markets after we saw some end of month profit-taking on Monday, with Europe seeing gains of more than 1% and Wall Street eyeing a similar open. The last month was massive for the markets. One major risk event removed and three vaccines that...

Sunset Market Commentary

Markets After finishing the astonishing November rally with a dissonant yesterday, investors see the glass again half full rather than half empty. Yesterday’s setback probably was mainly an end-of month, technically inspired repositioning. Even so, today’s news headlines and data were also mostly market-friendly. The risk revival started in Asia...

Canada GDP Bounced Back in Q3, But Recovery to Stall in Q4

40.5% (annualized) Q3 GDP bounce-back big (but smaller than expected) Spending on services still very restrained - goods-producing sectors doing better Savings hoard to boost spending once virus containment measures ease The 8.9% increase in Q3 GDP (40.5% at an annualized rate) didn’t meet forecasters’ expectations, but still marked...

Brexit: Three Scenarios and What’s Priced In for GBP/USD?

Nearly four and half years on from the Brexit vote in June 2016, the finish line is finally in sight for the UK to formally leave the European Union. One way or another, the UK’s “transition period” will officially end on 31 December, though we’ve learned through experience that...

EURCHF Maintains Positive Structure, Despite Recent Fading

EURCHF portrays an improving picture despite its latest retreat from the 1.0859 resistance mark. The rising simple moving averages (SMAs) retain a bullish tone while the merged Ichimoku lines are flattening in-line with the Ichimoku cloud, supporting dampened price action currently between 1.0794 and 1.0859. The short-term oscillators reflect waning...

Swiss Franc Dips Despite Strong GDP

The Swiss franc is showing some volatility this week. After starting the week with gains, USD/CHF has surrendered those gains in the Tuesday session. Currently, USD/CHF is trading at 0.9055, down 0.36% on the day. Swiss GDP beats consensus Most major economies have rebounded in impressive form in Q3, after sustaining sharp...

U.S Futures Rising – Watch TSLA, PFE, BNTX, XOM

The S&P 500 Futures are on the upside after they closed mixed on Monday. Later today, the U.S. Commerce Department will release October construction spending (+0.8% on month expected). The Institute for Supply Management will report its Manufacturing Index for November (58.0 expected). Research firm Markit will publish final readings...

Aussie on Hold ahead of GDP

The Australian dollar has recorded small gains in Tuesday trade. Currently, AUD/USD is trading at 0.7349, up 0.08% on the day. RBA stays the course As widely expected, the Reserve Bank of Australia remained on the sidelines at its final policy meeting of the year. After a busy November meeting, the...

EUR/GBP 4H Chart: Tests 200– Period SMA

The common European currency surged by 118 pips or 1.33% against the British Pound during last week's trading sessions. The currency pair tested the 200– period SMA at 0.8994 on November 30. Everything being equal, the exchange rate could continue to maintain the descending channel pattern during the following trading...

USD/CHF 4H Chart: Decline Likely To Continue

The US Dollar declined by 108 pips or 1.18% against the Swiss Franc during last week's trading sessions. The currency pair breached the 50-, 100– and 200– period SMAs last week. All things being equal, the exchange rate is likely to continue to decline in a descending channel pattern during...

GOLD Breaks Pattern

As a new month started, the yellow metal's price ended its decline in the borders of a channel down pattern. The price broke out of the pattern through its upper trend line. Moreover, the resistance of the 55-hour SMA was quickly broken. By the middle of Tuesday's GMT trading hours,...

USD/JPY Finds Support

The USD/JPY currency exchange rate started Tuesday's trading by finding support in the 100-hour simple moving average and the weekly simple pivot point at 104.21. In the meantime, additional support cloud be provided by the 55 and 200-hour SMAs, which were located near 104.15. If the combination of the mentioned...

GBP/USD Tests Resistance Zone

The GBP/USD ended trading sideways between the simple moving averages by surging. The surge resulted in two tests of the resistance zone that is located from 1.3380 to 1.3400. The attempts to pass the resistance zone was supported by the 200-hour simple moving average. In theory, the rate should continue...

EUR/USD Bounces Off 1.2000

On Monday, as forecast, the EUR/USD tested the resistance of the 1.2000 mark. This level held and caused a drop of the EUR/USD. The decline of the rate was slowed down by the 55-hour SMA, which was also passed. Eventually, the rate reversed at the technical support of the...

USD/CAD Selling Signals

The US Dollar against the Canadian Dollar bounced off from the lower boundary of a descending channel pattern at 1.2934 during yesterday's trading session. As a result, the exchange rate surged by 79 basis points or 0.61% on Monday. Currently, the currency pair is trading near the weekly support level...

NZD/USD Two Scenarios Likely

The New Zealand Dollar declined by 38 basis points or 0.54% against the US Dollar on Monday. The decline was stopped by the 100– hour simple moving average during yesterday's trading session. As for the near future, the exchange rate could continue to trend in an ascending channel pattern. Bullish...

AUD/USD Could Edge Up

The Australian Dollar declined by 62 basis points or 0.84% against the US Dollar on Monday. The currency pair tested the lower boundary of an ascending channel pattern at 0.7340 during yesterday's trading session. The AUD/USD pair bounced off from the support line during the Asian session on Tuesday. Most...

EUR/JPY Bounces Off Support

The 50– hour simple moving guided the Eurozone single currency against the Japanese Yen on Monday. The currency pair made about 65 basis points move or 0.52% during yesterday's trading session. The exchange rate bounced off from a support cluster formed by the 50– and 100– hour SMAs at 124.46....

EUR/USD Break Or Bounce Scenarios At 1.20 Resistance Zone

EUR/USD has reached the powerful resistance and target zone at 1.20. Will price action create a larger bearish retracement? Or will the uptrend be able to break above it? The main question is whether price action has completed a bullish wave C (pink)? Or will it push up higher for...

EURUSD Approaching Overbought

The euro currency is struggling to gain fresh upside momentum against the US dollar, despite November impressive monthly price close. Traders may be cautious towards the pair as a number of technical indicators are showing that the EURUSD pair is approaching overbought conditions. Lower time frame analysis loss of...

LTCUSD $90.00 Still Key

Litecoin is struggling to break past the $90.00 resistance level, despite Bitcoin advancing to new all-time high on certain cryptocurrency exchanges yesterday. Technical analysis highlights that the LTCUSD pair could correct back towards the $70.00 level if the $90.00 level continues to hold. To the upside, a breakout above...

WTI Futures Rebound Off Ascending Line, Still Bullish In Near Term

WTI crude oil futures are flirting with the ascending trend line, which has been standing over the last month in the 4-hour chart. The RSI indicator is pointing up in the bullish region, however, the MACD is still falling below its trigger line in the positive area. A rebound on the...

USDCAD’s Negative Bias Struggles Near Multi-Year Floor

USDCAD is finding difficulty in returning under the lower Bollinger band around 1.2949, despite the picture remaining largely to the downside. The simple moving averages (SMAs) are maintaining their controlling bearish demeanour, while conflicting signals in near-term momentum are exhibited within the short-term oscillators. The MACD, in the negative region,...

GBPUSD Re-Challenges A Familiar Topside Line

GBPUSD has been struggling to claim the 1.3400 level and the familiar upper ascending line over the past week, which once again managed to resist bullish forces. Encouragingly, the red Tenkan-sen line and the 78.6% Fibonacci of the short 1.3481 – 1.2674 downleg came immediately to the rescue around 1.3315, providing another opportunity to the...

EURJPY Shows Signs For Bullish Retracement Around 125.00

EURJPY is rising above the descending channel and near the Ichimoku line, suggesting an upside retracement over the last couple of days. According to the simple moving averages (SMAs), the 20-day SMA completed a bullish crossover with the 40-day SMA, confirming the positive move around the 125.00 handle. The RSI...

Stocks Resume Gains, Dollar Whipsaws As Optimism Returns

Asian recovery gathers speed, pulling global stocks higher Dollar bounces higher, then falls as temporary growth jitters subside Powell offers no policy clues in prepared remarks as US data underwhelms Pound spikes above $1.34 as Brexit deal speculation heats up Recovery back on track, at least in Asia Strong manufacturing...

OPEC+ Drama Sinks Oil, Gold Steadies And Bitcoin Eases Off Fresh Record

Oil lower as OPEC deal remains elusive Crude prices remained heavy after OPEC+ had to postpone their meeting a few days to allow more time for energy ministers to reach an agreement. The last time OPEC+ failed to reach a deal was in March, before the historic plunge, so producers...

Asia Supported On Robust Caixin Survey, RBA Delivers No Surprises, Powell On Tap

Asian equity markets higher on Moderna, Chinese PMI Global equities are starting December nicely after both Moderna takes the next step in getting its COVID-19 vaccine authorized and China’s Caixin PMI surged to a 10-year high, as external demand impresses. Shanghai soars following the private survey release, leading the gains...

Crude Oil: Choppy

Pivot (invalidation): 45.55 Our preference Short positions below 45.55 with targets at 44.40 & 44.00 in extension. Alternative scenario Above 45.55 look for further upside with 46.25 & 46.55 as targets. Comment As Long as 45.55 is resistance, look for choppy price action with a bearish bias.