Looking at the overall market, we've got a clear ascending channel forming higher highs and higher lows. Currently, we're about halfway through the current swing in the market, as price bounced off the channel's support at the start of November and we're now on our way to reach the resistance. Buyers are probably watching out for price action confirmations at the previous resistance at 1.328 and looking for price to treat this as new support, and continuing the bullish move. However, sellers will see that price failed to break through the 1.34 resistance, the same level as the previous higher high in the channel. This also lines up with not only the rising wedge formation which price is now breaking out of. Also, we're backed by some institutions like TD Bank and Credit Agricole who are saying the Pound is beginning to look expensive and according to Brexit-proxy indicators, GBP scores poorly on a mix of short-term valuation and growth, where relative mobility trends point to another run below 1.30. Also, with Biden pushing for a stimulus before year-end, this will further strengthen the USD and therefore points more towards a drop in this market. For extended fundamentals click here.
There's a mixed outlook on this market because we've got this bearish butterfly harmonic pattern formed in addition to the double top at the 0.738 level. The AUD is relatively neutral at the moment, and the performance in commodities will remain the dominant driver and influence moving forward. However looking at this market as a buyer, I've been watching the progress in this descending triangle pattern which broke to the upside, and they're likely to want to continue pushing price higher. I think we could see bullish moves as we've got a weak USD currently caused by participants moving out of safe-havens and back into riskier assets. This could without a doubt push price higher to previous long-term levels such as 0.75 or even monthly resistance levels like 0.80. For this reason, I'm a bit mixed at the moment, I would also pay close attention to how the Australian government will contain and deal with the Covid outbreak. For extended fundamentals click here.
Price has been travelling within this descending channel October forming successive lower lows and lower highs. I pointed this out two weeks ago that price was approaching the channel's resistance however we've still yet to see a clear touch, rejection and bounce-off the resistance. Sellers in the market are likely to want to push price lower targeting the -27% Fib level, which is 0.52. However, looking at the recent moves, we can see loads of consolidation between 1.546 and 1.555 as there's mixed outlooks on these currencies. The EUR is highly dependant on the Coronavirus outbreak as countries are re-implementing second lockdowns, the risks for the EUR will be to the downside. Whereas the CAD's expectations for policy tightening will likely support CAD, while expectations for policy easing will likely pressure CAD. I would suggest waiting on more clear drivers before taking any positions on this pair. For extended fundamentals click here.
We've got this overall bullish flag pattern formed, with price now at the channel's support and just surpassing the 71% fib level. Buyers are most likely looking for a clear rejection and bounce off this level and completing this chart pattern, pushing price back to 1855 and 1900 level. The fact that market participants have moved out of safe-havens and into riskier assets, this factor along with the USD following unprecedented easing from the Fed in prior months, and now expectations for prolonged easing as the central bank has adopted AIT, has notably weakened the USD. It's hard to say what will happen next, but I think we could see price reversing from this zone and back into the 1900 level, but this is just a possibility, with constant vaccine news, anything could happen. For extended fundamentals click here.
AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.
Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]
This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]
This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]
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