Top Trade Setups in Forex - Sideways Trading In Play!
|The US stock indexes edged up to record-high territory after a choppy session. The Dow Jones Industrial Average rose 31 points (+0.1%) to 28036, the S&P 500 added 1 point to 3122, and the Nasdaq Composite was up 9 points to 8549.
In the U.K., the Confederation of British Industry will release Manufacturing Orders Index for November (-30 expected). The U.S. Commerce Department will report October housing starts (1.32 million units expected) and building permits (1.38 million units expected).
XAU/USD - Choppy Trading In a Wide Range
The safe-haven-metal prices unchanged despite the uncertainty increased in the trade deal between the United States and China. A report came from the CNBC that China was negative about a trade deal with the United States. Chinese officials found U.S. President Donald Trump's comment that he did not agree on canceling tariffs from the Chinese goods.
The yellow metal was little affected by the news. U.S. Gold Futures for December delivery last traded at $1,472.45 by 12:57 AM ET (04:57 GMT), up 0.04%.
The report came that Trumps said I just finished a perfect & friendly meeting at the White House with Jay Powell of the Federal Reserve. Everything was discussed, including interest rates, adverse interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, E.U. & others, etc.
Traders also await weekly crude inventories reports from the U.S. Energy Information Administration and the American Petroleum Institute this week, which are due on Wednesday and Thursday, respectively.
XAU/USD - Daily Technical Levels
Support Resistance
1460.54 1478.16
1449.67 1484.91
1432.05 1502.53
Pivot Point 1467.29
Gold - XAU/USD- Daily Trade Sentiment
The precious metal gold prices are struck in a broad trading range of 1,472 - 1,458. On the 4 hour chart, gold prices have started falling lower after closing a series of Doji patterns below 1,470 area.
Closing of candles below 50 periods EMA is suggesting chances of a bearish trend in gold prices. On the lower side, gold may continue to drop until 1,464 and 1,458.
The MACD and RSI are holding in the bullish zone, but the recent MACD candle is smaller than the previous histogram, which typically means that sellers loom around the corner. Gold may continue to trade bearish below 1,470 level today.
USD/CAD - Descending Triangle Pattern
On Tuesday, the USD/CAD closed at 1.3204 after placing a high of 1.3253 and a low of 1.32000. Overall the movement of USD/CAD remained Bearish that day.
Crude oil prices were steady at the beginning of the Starting day of the week but fell later, which weighed on commodity linked-currency Loonie. The pair USD/CAD also dropped as a result of Crude Oil prices drop on Monday.
The pair USD/CAD has dropped broadly after the weakened U.S. Dollar due to increased uncertainty of US-China trade talks. China demanded tariffs drop back, but Trump denied, which weighed on U.S. yields and ultimately weighed on USD/CAD.
There was NAHB Housing Market Index released on Monday at 20:00 GMT, which showed a drop to 70 from 71 and added the pressure on fallen U.S. dollars. Hence, it created a robust Bearish trend for USD/CAD that day to place a low of 1.3200.
USD/CAD - Daily Technical Levels
Support Resistance
1.3193 1.3228
1.3179 1.325
1.3144 1.3285
Pivot Point 1.3214
USD/CAD - Daily Trade Sentiment
The USD/CAD has formed a descending triangle pattern which is supporting the pair around the 1.3200 area. The 50 periods EMA is also keeping the pair lower below 1.3220 area, suggesting bearish trend in the USD/CAD.
In case of a bearish breakout below 1.3200 level, the USD/CAD may drop further until 1.3260 level. Whereas, the bullish breakout of 1.3220 can lead the USD/CAD prices towards 1.3240 and 1.3265 resistance levels.
AUD/USD – Market Set for Bearish Retracement
The AUD/USD pair closed at 0.68083 after placing a high of 0.68222 and a low of 0.67987. Overall the movement for AUD/USD remained Bearish that day. At 20:30 GMT, the Conference Board Leading Index from Australia for October remains flat at 0.2% and ad null effect on Aussie on Monday. However, at 20:00 GMT, the NAHB Housing Market Index from the United States dropped to 70 from expectations of 71 and weighed on U.S. Dollar.
Investors almost ignore the macroeconomic data on Monday and waiting for RBA meeting minutes to be released on Tuesday.
On the news front, the Chinese lack of confidence in Trump due to Impeachment proceeding and denial of removing tariffs as part of partial trade deal settlement increased the tensions of a trade war.
That created uncertainty in the market and weighed on the U.S. Dollar. The lack of confidence of Chinese officials over signing the Phase-one deal also affected the Chinese currency, and as a result, Aussie was also affected.
The Chinese Foreign Direct Investment showed a growth of 6.6% from the previous 6.5%. Aussie being China's leading trade partner, was affected by increased uncertainty over US-China trade relations and started to drop. AUD/USD ignored the weak USD Dollar and moved with the increasingly uncertain U.S. Political situation and tensed US-China trade relations on Monday.
AUD/USD - Technical Levels
Support Resistance
0.6799 0.6823
0.6787 0.6834
0.6763 0.6858
Pivot Point 0.6811
AUD/USD - Daily Trade Sentiment
The AUD/USD seems to take a bullish turn after treading bearish below 0.6820 resistance area. The level used to work as a support level during October.
The MCAD and RSI have shifted their sentiments to bullish as a weaker dollar, and stronger Aussie dominates the market. The 50 periods EMA stays around 0.6830 level. We may see bearish reversal below 50 EMA level of 0.6830. However, the bullish breakout of 0.6840 can lead the AUD/USD prices towards 0.6860.
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