Daily Market Report: October 28, 2020

Today’s events & figures – Trade what you know Financial markets feed into world events and are their direct consequence. Keep a daily eye on our roundup of the day’s news, numbers and announcements.

October 28, 2020

Is the Loonie moving away from commodities?

U.S. Stock Market

Last: 11,581.42

Pivot: 11,180

Review:

U.S. stocks were mixed after the close on Tuesday, as gains in the Technology, Consumer Services and Utilities sectors led shares higher while losses in the Financials, Industrials and Oil & Gas sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average lost 0.80%, while the S&P 500 index declined 0.30%, and the NASDAQ Composite index gained 0.64%.

Technical comment:

The NASDAQ 100 RSI is bullish and calls for further advance.

Preference scenario:

Long positions above 11,180.00 with targets at 12,440.00 & 13,100.00 in extension.

Alternative scenario:

Below 11,180.00 look for further downside with 10,680.00 & 10,300.00 as targets.

Resistance 12,440 13,100 13,320
Support 11,180 10,680 10,300
Is the Loonie moving away from commodities?
USD/CAD

Last: 1.3193

Pivot: 1.3160

Review:

The loonie has traditionally been seen as a commodity-linked currency because of the country’s vast natural resources. But trillions of dollars of stimulus, along with interest rate cuts from the Bank of Canada, the Federal Reserve and other central banks have realigned those forces.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 1.3160 with targets at 1.3225 & 1.3240 in extension.

Alternative scenario:

Below 1.3160, look for further downside with 1.3140 & 1.3120 as targets.

Resistance 1.3225 1.3240 1.3260
Support 1.3160 1.3140 1.3120
Is the Loonie moving away from commodities?
Gold

Last: 1,905.95

Pivot: 1,910

Review:

Gold stayed in the green lane for a third straight day on Tuesday and above the key $1,900 level as Covid-19 caseloads continued to dominate headlines, keeping risk appetite on a tight leash.

Technical comment:

Intraday technical indicators are mixed.

Preference scenario:

Short positions below 1910.00 with targets at 1898.00 & 1891.00 in extension.

Alternative scenario:

Above 1910.00, look for further upside with 1914.00 & 1920.00 as targets.

Resistance 1,910 1,914 1,920
Support 1,898 1,891 1,882
Is the Loonie moving away from commodities?
Oil

Last: 38.80

Pivot: 39.40

Review:

Oil prices slid more than 1 percent on Wednesday, paring the previous day's gains, as a jump in U.S. crude inventories and surging COVID-19 cases raised fears of an oversupply of oil and weak fuel demand.

Technical comment:

The RSI calls for a drop.

Preference scenario:

Short positions below 39.40 with targets at 38.30 & 37.90 in extension.

Alternative scenario:

Above 39.40, look for further upside with 39.85 & 40.35 as targets.

Resistance 39.40 39.85 40.35
Support 36.90 35.70 34
Is the Loonie moving away from commodities?
EUR/USD

Last: 1.1784

Pivot: 1.1805

Review:

The EUR/USD fell on Wednesday to close at 1.1780.

Technical comment:

A break below 1.1770 would trigger a drop towards 1.1755.

Preference scenario:

Short positions below 1.1805 with targets at 1.1770 & 1.1755 in extension.

Alternative scenario:

Above 1.1805, look for further upside with 1.1820 & 1.1835 as targets.

Resistance 1.1805 1.1820 1.1835
Support 1.1770 1.1755 1.1740
Is the Loonie moving away from commodities?
GBP/USD

Last: 1.3034

Pivot: 1.3050

Review:

The pound looks poised for gains ahead of U.S elections, yet whether it can maintain momentum after the vote is still questionable. Option risk reversals show traders are no longer bearish the U.K. currency over a one-week horizon, opening the way for an advance before the Nov. 3 vote in America. Behind the shift in this gauge of positioning and sentiment lies the latest progress in Brexit negotiations, and a bias in the market to sell the dollar in the run-up to the election.

Technical comment:

As long as the resistance at 1.3050 is not surpassed, the risk of the break below 1.3015 remains high.

Preference scenario:

Short positions below 1.3050 with targets at 1.3015 & 1.3000 in extension.

Alternative scenario:

Above 1.3050, look for further upside with 1.3075 & 1.3100 as targets.

Resistance 1.3050 1.3075 1.3100
Support 1.3015 1.3000 1.2990
Is the Loonie moving away from commodities?

Customer Notice: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading or investment advice. Trade360 provides Trading Central chart analysis to support clients in their trading decisions, which should be independently evaluated. The recipient acknowledges that he is solely responsible for his decisions. The analysis offered reflects the views of Trading Central and are subject to change at any time. Past performance of a financial asset is not a reliable indicator of its future performance. Trade360 cannot be held liable for any information provided by Trading Central. Trade360 makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of Trade360, a third party or otherwise.

Trade with a Licenced Broker

Trade360.com

Licenced by CySEC

Our EU client portal, operated by CrowdTech Ltd. under CySEC Regulation, license number 202/13.

Trade360.com.au

Licenced by ASIC

Our Australian client portal, operated by Sirius Financial Markets Pty Ltd. under ASIC regulation, license number 439907.

Trade360.finance

Our global client portal, operated by ST Services Ltd.

Search