The Analysis of Forex Market (7th Novmber)

CPT Markets
Nov 7 · 3 min read

This article is daily technical analysis from Ray Shen.

Dollar index slightly under pressure 98.00 mark, but China’s trade negotiations frequently came out good news which makes market optimism high, once the 98.00 mark, above short-term pressure in 98.50, then above pressure in 99.00 line, below short-term support in 97.50.

GBP/USD

The bank of England’s decision to hold fire in November is widely expected, following relatively cautious trading and the start of campaigning for an early general election that still leaves markets concerned about the possibility of a hung parliament. With the election less than six weeks away, the markets will be watching closely for any change in the trend of support for the main parties in opinion polls, and the fate of the pound in the short term will depend almost entirely on the polls.

Sterling traded in a narrow range yesterday, but remained under short-term pressure at 1.2900, above 1.3000, below 1.2800 and below 1.2700, the 200-day moving average.

USD/JPY

The dollar fell below 109 again against the yen on the belief that domestic demand in Japan is still doing well and remains supportive of the bank of Japan in the short term. With recent poor service and manufacturing data and unemployment rising from a 30-year low, downside risks to Japan’s economy remain clear, meaning the boj’s ultra-loose stance remains unshakable.

The USD/JPY traded around 109.00, with upside pressure at 109.50 and underside support around 108.50.

XAU/USD

Gold bulls put up technical resistance as the dollar index retreated, despite recent solid U.S. economic data that further reduced expectations of future fed rate cuts and further positive signals from the u.s.-china trade talks.

Gold prices in 1480 received support after a small rebound, the upper pressure is still in the 1500 integer mark, if the downward effective below 1480 see 1460 line.

USO/USD

New York crude continued to see-saw gains, but prices were held back at the 58.00 mark by a much larger than expected surge in U.S. EIA crude inventories, with upward pressure in the 59.00 to 60.00 range, short-term support below 56.00, and support below the 55.00 line.

Today Focus

15:00 Germany September quarterly industrial output monthly rate (%)

20:00 UK central bank benchmark interest rate in November (%)

21:30 U.S. jobless claims for the week ended November 2

20:30 Mark Carney, governor of the bank of England, holds a press conference

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