Top Trade Setups in Forex - Risk-Off Sentiment Dominates
|The risk sentiment shifts to risk-off after leaders from both nations announced that a reversal of tariffs had been agreed, but later it was denied by U.S. President Donald Trump on Friday. He did not entirely rule out a settlement, and U.S. Treasuries stayed above a critical support level at 1.9%, buoying the currency.
The U.S. stocks edged higher to record closes. The Dow Jones Industrial Average added 6 points to 27681, the S&P 500 gained 7 points (+0.3%) to 3093, and the Nasdaq Composite was up 40 points (+0.5%) to 8475. U.S. President Donald Trump said he has not agreed to roll back all tariffs imposed on imports from China, despite saying the trade talks are moving along "very nicely."
XAU/USD - Bulls Get in Over Safe Haven Appeal
On Monday, the precious metal gold gained insignificantly from the prior session's three-month low, with bullish trend mostly driven by concerns over the global market, doubt over whether the United States and China will strike a trade agreement, and the mounting fury in Hong Kong.
Gold traded sharply bearish, and investors are taking this chance to take trades in the safe-haven asset as there is still an upside to it, reflecting the worries over the trade war.
Besides that, the Gold purchases by several central banks, particularly in China, are also raising its demand and prices.
XAU/USD - Daily Technical Levels
| Support | Pivot Point | Resistance |
| 1484.27 | 1489.31 | 1495.6 |
| 1477.98 | 1500.64 | |
| 1466.65 | 1511.97 |
Gold - XAU/USD- Daily Trade Sentiment
Gold begins in a bullish trend developing a robust bullish candle on the 4-hour graph. U.S. President Trump displayed no readiness towards turning off the earlier applied tariffs on China, which is causing the safe-haven demand. Presently, gold is expected to find an immediate resistance at 1,464, and the upward violation of this level can direct gold prices towards 1,468 and 1,472. Whereas, gold can proceed to trade bearish beneath 1,463/4 level to mark 1,458.
USD/CAD- Dollar Gains over Eased Trade War
The USD/CAD advanced 0.4% to 1.3229, the highest level since October 14. Official data showed that the Canadian economy shed 1,800 jobs in October (+15,000 jobs expected), while the jobless rate remained steady at 5.5% (as expected).
Oil prices remained buoyed by optimism in the U.S.-China trade talks. Nymex crude oil futures added 0.2% to $57.24 a barrel, and Brent was up 0.4% to $62.51 a barrel. Weaker oil prices also keep the USD/CAD bullish.
Bank of Canada, the prior week, held interest rates steady at 1.75% as broadly anticipated by markets. BoC will probably pause until Q1 following year ere easing. Loonie the last month helped by soaring crude oil price, Canada's principal export goods, and greater interest rates.
USD/CAD- Daily Technical Levels
| Support | Pivot Point | Resistance |
| 1.3194 | 1.3216 | 1.3248 |
| 1.3162 | 1.3269 | |
| 1.3108 | 1.3323 |
USD/CAD - Daily Trade Sentiment
The USD/CAD has violated the trading range of 1.3180 - 1.3120. The bullish breakout came in response to a stronger dollar and weakening Loonie, which drove move buying in the USD/CAD currency pair. At the moment, the USD/CAD may trade bullish only above 1.3200 support level to target 1.3235.
AUD/USD – Fibonacci Supports
The AUD/USD currency pair is flashing red and hit the weekly lows of 0.6847, mainly due to trade-related uncertainty and buyers still in control because of risk-off market sentiment.
Markets still cautious and avoiding placing any bets on the higher-yielding currency such as the Australian Dollar, in the wake of the lack of certainty regarding the United States and China trade deal, particularly after the White House Adviser Navarro said that he entirely not agree to anything regarding the tariff.
I am increasing the negative tone surrounding the Australian Dollar, mainly due to intensifying violence in Hong Kong after the police shot killed two protestors during the ongoing demonstration. Asian equities are fashing red in the wake of Hong Kong political protest, dragging the wall street futures lower alongside. Apart from this, the greenback continues to support as safe-haven demand. The U.S. dollar index found on the 3-week highs of 98.40, having formed a double bottom pattern on the daily sticks.
Moreover, id talking about AUD/USD daily chart. We can be observed the lower low set up, indicating that more bearish risks continue in play ahead of the data-heavy week. Notably, the eyes now shift on the Australian NAB survey, which s scheduled to release tomorrow between empty U.S. docket because the Americans celebrate their national holiday on the day.
AUD/USD - Technical Levels
| Support | Pivot Point | Resistance |
| 0.6842 | 0.6864 | 0.6881 |
| 0.6825 | 0.6904 | |
| 0.6785 | 0.6944 |
AUD/USD - Daily Trade Sentiment
On Monday, the AUD/USD continues to trade below 50% Fibonacci retracement level of 0.6870 as the robust greenback proceeds to control the market. At the moment, the greenback is becoming more vulnerable in the wake of decreased trade agreement prospects. The Aussie is getting the bullish drive, particularly after closing a series of Doji patterns on the 4 hourly charts. The AUD/USD may trade bullish above 0.6845 to target 0.6885 today.
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