Gold price continues bounce after strong sell off.

Trading 13 Nov 2020 Commentaire »

Gold price continues to slide higher towards $1,900 after the sharp sell off decline from $1,960 to $1,850. Gold price is expected to continue higher towards $1,900 level as a back test as long as price is above $1,866.

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Gold price is slowly sliding higher towards the Kumo resistance at $1,900. Price is in an aftershock phase. After the sharp $100 decline, Gold price is trying to find direction. The Ichimoku cloud indicator so far points to a bigger decline. The first clue that another sell off is coming is when and if price breaks below $1,866. On the other hand bulls want to recapture $1,900 and doing this would be their first step towards a bigger upward bounce. If price gets close to the Kumo and gets rejected I will prefer to open partial short positions and add below $1,866.

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EURUSD revisits 1.1830 resistance level

Trading 13 Nov 2020 Commentaire »

EURUSD is challenging horizontal resistance at 1.1830. As can be seen in the chart below this price level has been important resistance before and price always found it difficult to overcome it. Will bulls manage to break above it this time or will we see a rejection?

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Blue line - upward sloping support trend line

Red line - horizontal resistance

Green rectangles- resistance tests

EURUSD continues to trade above the blue trend line support. This support is now at 1.1805. Breaking below it will increase the chances of a move towards 1.17. Until then bulls remain in control and face the 1.1830 resistance for one more time. In many occasions in the past price got rejected at this level and bulls now need to be cautious. If price continues to make higher highs and higher lows above 1.1830 we should next expect EURUSD to reach 1.20-1.21.

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Short-term plan for NZDUSD

Trading 13 Nov 2020 Commentaire »

NZDUSD is pulling back from the recent top at 0.69. Price however remains inside a bullish channel and this makes us believe that the current pull back is only temporary and a pause to the bigger up trend towards 0.6920-0.6950.

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Blue lines -bullish channel

Green lines - expected path

NZDUSD is forming higher highs and higher lows since late September when it was trading around 0.65. Price has made a clear upward extension from 0.66 to 0.69 and now we are in a pull back phase around 0.6820. We expect price to eventually continue its upward trend towards 0.6930. A move closer to the lower channel boundary can not be ruled out currently. A pull back towards that level will be a buying opportunity. Support is found at 0.68 and next at 0.6730.

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U.S. Consumer Sentiment Unexpectedly Deteriorates In November

Trading 13 Nov 2020 Commentaire »

Reflecting a less favorable assessment of future economic prospects, the University of Michigan released a report on Friday showing an unexpected decrease in U.S. consumer sentiment in the month of November.

The preliminary report said the consumer sentiment index fell to 77.0 in November after rising to a seven-month high of 81.8 in October. The pullback came as a surprise to economists, who had expected index to inch up to 82.0.

The unexpected decrease by the headline index came as the index of consumer expectations tumbled to 71.3 in November from 79.2 in October.

The report showed a much more modest drop by the current economic conditions index, which edged down to 85.8 in November from 85.9 in the previous month.

"The outcome of the presidential election as well as the resurgence in covid infections and deaths were responsible for the early November decline," said Surveys of Consumers chief economist Richard Curtin

"Interviews conducted following the election recorded a substantial negative shift in the Expectations Index among Republicans, but recorded no gain among Democrats," he added. "It is likely that Democrats' fears about the covid resurgence offset gains in economic expectations."

On the inflation front, the report said one-year inflation expectations crept up to 2.8 percent in November from 2.6 percent in October, while five-year inflation expectations rose to 2.6 percent from 2.4 percent.


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*U.S. Consumer Sentiment Index Drops To 77.0 In November

Trading 13 Nov 2020 Commentaire »

U.S. Consumer Sentiment Index Drops To 77.0 In November


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U.S. Producer Prices Rise 0.3% In October Amid Jump In Food Prices

Trading 13 Nov 2020 Commentaire »

Producer prices in the U.S. increased by slightly more than anticipated in the month of October, according to a report released by the Labor Department on Friday.

The Labor Department said its producer price index for final demand rose by 0.3 percent in October after climbing by 0.4 percent in September. Economists had expected prices to inch up by 0.2 percent.

"While the increase in prices was just above expectations, inflation pressures remain muted overall and will lend support to the Fed's strong accommodative bias," said Oren Klachkin, Lead U.S. Economist at Oxford Economics.

He added, "High frequency data suggests demand momentum has slowed amid a resurgence in Covid-19 cases, and our inflation outlook remains subdued."

The bigger than expected increase in producer prices was partly due to a jump in food prices, which surged up by 2.4 percent in October amid a spike in prices for fresh and dry vegetables.

The report said energy prices also climbed by 0.8 percent in October after slipping by 0.3 percent in the previous month, reflecting higher gasoline prices.

Excluding food and energy prices, core producer prices crept up by 0.1 percent in October after rising by 0.4 percent in September. Core prices were expected to edge up by 0.2 percent.

The uptick in core prices came as prices for final demand services rose by 0.2 percent in October following a 0.4 percent increase in September.

Prices for transportation and warehousing services jumped by 1.1 percent, while prices for trade services and final demand services less trade, transportation, and warehousing ticked up by 0.2 percent and 0.1 percent, respectively.

The report also said the annual rate of growth in producer prices crept up to 0.5 percent in October from 0.4 percent in September.

Meanwhile, core producer prices in October were up by 1.1 percent compared to a year ago, reflecting a modest deceleration from the 1.2 percent increase in the previous month.

The Labor Department released a separate report on Thursday showing U.S. consumer prices came in flat in the month of October.

The Labor Department said its consumer price index was unchanged in October after rising by 0.2 percent in September. Economists had expected another 0.2 percent uptick.

Excluding food and energy prices, consumer prices were still flat in October after edging up by 0.2 percent in September. Core prices were also expected to inch up by another 0.2 percent.

Compared to the same month a year ago, consumer prices in October were up by 1.2 percent, reflecting a deceleration from the 1.4 percent growth seen in September.

The annual rate of growth in core consumer prices also slowed to 1.6 percent in October from 1.7 percent in the previous month.


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U.S. Producer Prices Rise Slightly More Than Expected In October

Trading 13 Nov 2020 Commentaire »

Producer prices in the U.S. increased by slightly more than anticipated in the month of October, according to a report released by the Labor Department on Friday.

The Labor Department said its producer price index for final demand rose by 0.3 percent in October after climbing by 0.4 percent in September. Economists had expected prices to inch up by 0.2 percent.

The bigger than expected increase in producer prices was partly due to a jump in food prices, which surged up by 2.4 percent in October amid a spike in prices for fresh and dry vegetables.

Excluding food and energy prices, core producer prices crept up by 0.1 percent in October after rising by 0.4 percent in September. Core prices were expected to edge up by 0.2 percent.


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Dollar Little Changed After U.S. PPI

Trading 13 Nov 2020 Commentaire »

Following the release of U.S. producer prices for October at 8:30 am ET Friday, the greenback changed little against its major counterparts.

The greenback was trading at 104.91 against the yen, 0.9147 against the franc, 1.1812 against the euro and 1.3161 against the pound around 8:33 am ET.


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*U.S. Producer Prices Rise 0.3% In October, Core Prices Inch Up 0.1%

Trading 13 Nov 2020 Commentaire »

U.S. Producer Prices Rise 0.3% In October, Core Prices Inch Up 0.1%


The material has been provided by InstaForex Company - www.instaforex.com

Dollar Mixed Ahead Of U.S. PPI

Trading 13 Nov 2020 Commentaire »

The U.S. producer prices for October are due at 8:30 am ET Friday. Ahead of the data, the greenback traded mixed against its major counterparts. While it dropped against the yen, it was steady against the rest of major rivals.

The greenback was worth 104.87 against the yen, 0.9144 against the franc, 1.1814 against the euro and 1.3168 against the pound at 8:25 am ET.


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