#WaveAnalysis

#Corn rising inside impulse waves 3 and (3)

• Likely to rise to 393.00

https://fxpro.news/market-snapshots/corn-wave-analysis-7-october-2020-20201007/

The world is likely on the verge of seeing multiple increases across agricultural commodity prices

With governments and central banks focusing on supporting household consumption, the cost of food and energy may continue to rise for quite a long time. As a result, we can see a repeat of the growth in 2010-2012.

Grain prices more than doubled between June 2010 and February 2011, rising from $4.2 to $9+, when government stimulus measures brought financial markets and the economy back towards growth.

Cotton grew five times between 2009 and 2011 after multi-year lows, clearly replicating the heat of passion in the financial system. In March-April 2020, its price was returning toward its lowest level since 2009, but since then prices have been rising for the several months in a row, adding more than 40% over this period.

https://fxpro.news/daily-forex-outlook/the-world-is-likely-on-the-verge-of-seeing-multiple-increases-across-agricultural-commodity-prices-20201008/

#WaveAnalysis

#Cotton rising inside impulse waves (iii) and 3

• Likely to rise to 68.90

https://fxpro.news/market-snapshots/cotton-wave-analysis-8-october-2020-20201008/

#WaveAnalysis

#Brent crude oil continues to rise

• Likely to reach 44.00

https://fxpro.news/market-snapshots/brent-crude-oil-wave-analysis-8-october-2020-20201008/

Crude oil and stock indices are rising steadily after a rollback in September

Stock indices are strengthening and the pressure on the dollar is gaining momentum. Futures on the S&P 500 added more than 3.6% within two days, more than recovering from the drop it took on news of pausing the relief package negotiations. Yesterday Trump reported that discussions would continue, bringing back to the market its main growth driver over recent days.

The short-term technical picture of the market is now on the bull’s side, noting a recovery in customer interest after the September slump.

Brent prices went above the 50 and 200-day averages after a 3% jump on Thursday and more than 11% growth so far this week. There is also a recovery of interest in oil due to speculation about improving economic prospects through incentives.

https://fxpro.news/daily-forex-outlook/crude-oil-and-stock-indices-are-rising-steadily-after-a-rollback-in-september-20201009/

#WaveAnalysis
#Gold rising inside impulse wave 3

• Likely to reach 1920.00

https://fxpro.news/market-snapshots/gold-wave-analysis-9-october-2020-20201009/

#WaveAnalysis

#USDCAD falling inside impulse wave C

• Likely to reach 1.3100

https://fxpro.news/market-snapshots/usdcad-wave-analysis-9-october-2020-20201009/

#WaveAnalysis

#Copper rising inside impulse wave 3

• Likely to test the resistance level 312.00

https://fxpro.news/market-snapshots/copper-wave-analysis-9-october-2020-20201009/

World Central Banks are strengthening measures to keep the dollar from falling

Asian markets opened a new week near the two-year peaks in the MSCI Asia Pacific Index, thanks to a 2% jump in the Chinese indices.

Demand for risk assets dragged the dollar down. On Friday, EURUSD went up above 1.1800 while GBPUSD surpassed 1.3000 and USDCHF sank to 0.9100.

A return of EURUSD, GBPUSD to recent local highs may raise the question of whether other countries’ authorities will be comfortable with their currencies strengthening.

China, for example, has begun taking measures to curb the growth of its currency since returning from the holidays. The People’s Bank of China made it easier to short the Chinese currency.

This means that it is now worth keeping a close eye on how the European authorities will react to the weakening of the dollar against their currencies above 1.2000 per euro and 1.3500 per pound. If it is sustained, we should expect even more easing in monetary policy.
https://fxpro.news/daily-forex-outlook/world-central-banks-are-strengthening-measures-to-keep-the-dollar-from-falling-20201012/

#WaveAnalysis

Natural gas (#NTG) broke key round resistance level 3.000

• Likely to reach 3.300

https://fxpro.news/market-snapshots/natural-gas-wave-analysis-12-october-2020-20201012/

#WaveAnalysis

#ChinaA50 broke daily Triangle

• Likely to rise to 16400

https://fxpro.news/market-snapshots/chinaa50-wave-analysis-12-october-2020-20201012/

#WaveAnalysis

#USDJPY reversed from resistance area

• Likely to fall 105.00

https://fxpro.news/market-snapshots/usdjpy-wave-analysis-12-october-2020-20201012/

Oil lost its momentum but retained its growth potential

Slowly but surely, oil is being pressured by news that is undermining the delicate balance of supply and demand. The USA is recovering its production disturbed by Hurricane Delta. Libya is restoring output on its largest oilfield. In Norway, oil workers are back to work following the end of a strike. A formal agreement for a ceasefire between Armenia and Azerbaijan is also favourable for supply.

But in an environment of strong demand for growth assets in the stock markets, we can expect to see an increased interest in commodities, particularly oil, among stock market participants

https://fxpro.news/daily-forex-outlook/oil-lost-its-momentum-but-retained-its-growth-potential-20201013/

#WaveAnalysis

#GBPUSD reversed from resistance area

• Likely to fall 1.2845

https://fxpro.news/market-snapshots/gbpusd-wave-analysis-13-october-2020-20201013/

#WaveAnalysis

#EURJPY reversed from resistance area

• Likely to fall to 123.25

https://fxpro.news/market-snapshots/eurjpy-wave-analysis-13-october-2020-20201013/

The growth of new COVID-19 cases in Europe dragged EUR, GBP

The dollar added about 0.6% on Tuesday and is growing against the euro at the start of trading on Wednesday. EURUSD has retreated from levels above 1.1800 to 1.1735. GBPUSD dropped to 1.2880 against 1.3060 early on Tuesday.

The infection rate dynamics may again become a driver on the stock and currency markets. In the first case, we see an inverse correlation between the number of infections and the demand for risk assets. In the case of currencies, changes in the incidence ratio in one country/region relative to another play an important role.

The new records in the UK and France have set the issue of lockdown in these countries back on the agenda.

https://fxpro.news/daily-forex-outlook/the-growth-of-new-covid-19-cases-in-europe-dragged-eur-gbp-20201014/

#WaveAnalysis
#EURCHF reversed from support area

• Likely to rise to 1.0780

https://fxpro.news/market-snapshots/eurchf-wave-analysis-14-october-2020-20201014/

#WaveAnalysis
#Soy reversed from support area

• Likely to rise to 1080.00

https://fxpro.news/market-snapshots/soy-wave-analysis-14-october-2020-20201014/

Pandemic surge increasing market cautions

The US indexes stay under moderate pressure on the third day. The S&P500 lost 0.7% on Wednesday and futures on the index are down another 0.2% on Thursday morning.

China’s stock market indices are holding up much better than their European and US counterparts, this can be easily explained by the lower number of new infections.

Currency exchange rates also very clearly reflect the difference in economic prospects due to differences in epidemiological conditions. USDCNH has remained at its lowest level since May 2019, despite the constant heat of trade disputes.

More developed countries are facing the need to increase financial and monetary support to the economy to mitigate the economic impact of the second wave of disease. All this has a significant effect on currency movements, as investors see increased signs of low rates for longer.

https://fxpro.news/daily-forex-outlook/pandemic-surge-increasing-market-cautions-20201015/

Oil in no rush to decline, despite lower demand for risks

Despite the lower demand for risk assets this week, oil was able to gain support from the inventory report yesterday. Buyer support came in handy, allowing oil to stay above significant technical levels. The ability of the Brent and WTI futures to perform "above the market" is an important bullish sign about its near-term prospects.

New weekly data showed a 3.8-million-barrel decrease in inventories last week. Inventory growth by the same week decreased to 12.5% from 15.8% a week earlier and from over 20% in early September and July.

The current inventory level is 10% below its peak in June, clearly reflecting the recovery in demand for oil. On the other hand, there has been no actual production growth in recent weeks due to the long hurricane season.

https://fxpro.news/daily-forex-outlook/oil-in-no-rush-to-decline-despite-lower-demand-for-risks-20201016/