Market News & Analysis


Top Story

Daily Forex Technical Strategy (Tues 03 Dec)

EUR/USD – Sideways


click to enlarge chart

  • The pair has inched down lower to test the 14 Nov 2019 minor swing low of 1.0990 before it rebounded back towards the minor range resistance of 1.1090 in place since 06 Nov 2019.
  • The hourly RSI oscillator has started to inch down from an extreme overbought level which indicates that yesterday’s push up reinforced by U.S. President Trump’s tweets on reinstating steel tariffs on Brazil and Argentina imports and a weaker ISM manufacturing PMI for Oct is likely to be overextended. Thus, it may see a push down to retest 1.0990.
  • Since it is trading within a minor range configuration in the middle of a major descending resistance from 24 Sep 2018 high, prefer to turn neutral now between 1.1090 and 1.0990. A clearance above 1.1090 sees a push up towards the 1.1180 major descending resistance while a break with an hourly close below 1.0990 resumes the potential down move towards 1.0940 follow by 1.0880.

GBP/USD – Back at minor range resistance


click to enlarge chart

  • The pair has continued to evolve within a minor “Expanding Wedge”/sideways range configuration in place since 21 Oct 2019 high with its hourly RSI oscillator that has just retreated from its overbought region and a corresponding resistance that is in parallel with the “Expanding Wedge” resistance at 1.2975.
  • Maintain bearish bias below 1.2975 key short-term pivotal resistance for a potential push down to retest the minor range support/lower boundary of the “Expanding Wedge” at 1.2790. On the other hand, a break with an hourly close above 1.2975 revives the bullish tone for another round of impulsive upleg sequence to target the next intermediate resistance at 1.3210/3240 (3 Apr/03 May 2019 swing high area & Fibonacci expansion).

USD/JPY – Potential final push up towards “Ascending Wedge” top


click to enlarge chart

  • Yesterday’s slide from its recent minor swing high of 109.70 printed on 02 Dec has managed to stall just above the lower boundary of the minor bearish “Ascending Wedge” now acting as a support at 108.70 with the hourly RSI oscillator that has just rebounded from an extreme oversold level.
  • 108.70 key short-term pivotal support for a potential final push up to retest 109.70 before targeting the “Ascending Wedge” top/resistance at 110.00/15. On the other hand, a break with an hourly close below 108.70 shall trigger a bearish breakdown from the “Ascending Wedge” to kickstart a potential multi-week corrective down move towards the next near-term support at 107.90 in the first step.

AUD/USD – 0.6845 key minor resistance ahead of RBA


click to enlarge chart

  • The pair has staged a push up from the 28/29 Nov 2019 minor swing low area of 0.6755 before it stalled at the minor descending trendline resistance from 05 Nov 2019 high and the 38.2% Fibonacci retracement of recent slide from 31 Oct high to 29 Nov 2019 low.
  • In addition, the hourly RSI oscillator has started to retreat from an extreme overbought level. Maintain bearish bias below 0.6845 key short-term pivotal resistance for another potential push down to retest 0.6755 and below exposes 0.6720 next (09/16 Oct 2019 swing low areas).
  • On the other hand, a clearance with an hourly close above 0.6845 negates the bearish tone for squeeze up to retest 0.6900/6930 (31 Oct/05 Nov 2019 swing high & the major descending channel resistance from 03 Dec 2018 high).

Charts are from eSignal


Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.