#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/

#WaveAnalysis

#EURO50 falling inside impulse waves (iii) and 3

• Likely to reach 3100.00

https://fxpro.news/market-snapshots/euro50-wave-analysis-15-october-2020-20201015/

#WaveAnalysis

#Ferrari opened with the upward gap

• Likely to rise to 193.75

https://fxpro.news/market-snapshots/ferrari-wave-analysis-16-october-2020-20201016/

#WaveAnalysis

#Corn broke multi-month resistance level 400.00

• Likely to rise to 415.00

https://fxpro.news/market-snapshots/corn-wave-analysis-16-october-2020-20201016/

What is stopping markets from growing?

Asian markets opened trading on Monday with a jump in trading, adding 0.6% to the MSCI Asia Pacific Index.

The positive trend in Asia’s indexes does not seem sustainable due to several weak data reports published amid trading.

GDP figures seriously failed to meet expectations. Third-quarter growth was 2.7% after a jump of 11.5%. Year-over-year growth rate was 4.9%, which was noticeably weaker than the 5.5% expected. This suggesting a marked weakening of the recovery momentum.

All this makes us look cautiously at the figures for the fourth quarter as more countries announce new infection records and partially regain coronavirus restrictions. As a global factory, China runs the risk of facing demand shocks and economic pressure, even with relatively strong domestic demand.

https://fxpro.news/daily-forex-outlook/the-inevitable-turnaround-what-is-stopping-markets-from-growing-20201019/

#WaveAnalysis

#USDCHF reversed from resistance area

• Likely to fall to 0.9080

https://fxpro.news/market-snapshots/usdchf-wave-analysis-19-october-2020-20201019/

#WaveAnalysis

#Exxon Mobil falling inside impulse wave (3)

• Likely to fall to 33.20

https://fxpro.news/market-snapshots/exxon-mobil-wave-analysis-19-october-2020-20201019/

Elections and coronavirus fears are driving away investors from the US

Markets continue to pull into safety assets after the S&P500 fell 1.6% on Monday. Futures on the S&P500 declined further in the last five trading sessions.

It seems that investors are already beginning to prepare for market volatility before the elections, trying to move into protective financial instruments. These same forces are supporting the weakening of the dollar.

Meantime, the USDCNH continues to look to the bottom. Earlier this morning, the dollar was down to 6,665, its lowest value since July 2018, developing a five-month RMB rally. It does not harm the Chinese stock market, where the China A50 blue-chip index rose 25% in addition to the 7% increase in the renminbi. Hence, in USD terms, it is more than 32% over this period.

https://fxpro.news/daily-forex-outlook/elections-and-coronavirus-fears-are-driving-away-investors-from-the-us-20201020/