The FTSE 100 is looking vulnerable again today as movement resumes in the port of Dover after two days of gridlock as an attempt to prevent the spread of a new strain of coronavirus through Europe, putting downside pressure on European equities.

British stocks have been at the center of a risk-off move starting late last week as Brexit concerns resume. Fisheries continue to be the main discussion point in the last leg of talks, as the EU yesterday rejected a proposal from the UK government for a reduction of 35% of the catch in UK waters. The EU is only willing to accept as low as 25%, and this disagreement could see talks go past the December 31st deadline and into the new year, dragging on uncertainty for longer.
Looking ahead at the next two days, a reduction in liquidity may see markets moving rapidly, but the general perception is that there is a lack of direction. Equity markets are currently pending on the resolve of many open fronts like Brexit, the coronavirus pandemic, and the US stimulus bill, and any of these can offer heightened volatility in the days to come, so investors must be aware. 

UK100 D1 12 23 2020 1312

On the daily chart, we can see the FTSE 100 is stuck below the 61.8% Fibonacci level, falling under the 20-day moving average. Momentum indicators have reset the overbought conditions seen last week, so we could see continued buying support up until 6,600, although this area is likely to remain as a strong resistance unless there is a risk event.

To the downside, 6,255 remains as key support as Monday’s retracement was unable to fall below this level, which had previously acted as a barrier for further losses. A break below this level would leave the FTSE 100 exposed until the next support area between 6,160 and 6,110, before risking losing the 6,000 mark.   

 

Contact our advisors through website chat 24/7.

https://forexcapitalexperts.com/services

 

EURUSD H8 12 17 2020 2022

Recently surging to its highest level since April 2018, EUR/USD added another victim to its growing list of breached technical levels in the last few months. It has made considerable progress toward ending the multiyear decline it found itself in as a result. European Central Bank officials have already taken note but, judging by their commentary, have little interest in curtailing continued Euro strength in the near future. Still, this may become a concern in the future.
In the meantime, the steady fundamental landscape and recent technical break suggest EUR/USD may continue higher still. Since the pair trades at levels not seen in more than two years, immediate technical barriers are rather sparse. Nevertheless, prior highs from early 2018  the nearest of which does not arrive until 1.2405  may provide some influence if EUR/USD pushes higher.
Despite the recent break higher, shorter-term pullbacks are not out of the question and could serve as healthy consolidation. In the event of a reversal, early support may reside around the 1.2174, 1.2150 and 1.2100 levels. A potential “line in the sand” that, if broken, could warn of further losses rests at the December swing-low of 1.2059.  

 

Forex, Commodities signals
Subscribe now to get our exclusive forex signals

https://forexcapitalexperts.com/services

 

 

The FTSE 100 struggles to overcome a key Fibonacci level as vaccine optimism, which helped consolidate a significant recovery from the Octiber 30th lows, continues to fade. The UK stock index reached a five-month high on Monday but found increased resistance at 6465, where the 61.8% Fibonacci retracement from 7549 to 4776 is found. This level was significant back in the summer highs seen in June, as buyers were unable to consolidate above this level despite market optimism at the time. A break above this significant resistance would put focus on the 76.4% retracement, where an attempt to recover from the first coronavirus falls were halted. Moving averages seem to show that further upside is possible, but momentum is stalling, causing lower highs for 4 consecutive days.

 UK100 D1 11 20 2020 1427

 

Our information/charts  are NOT buy/sell recommendations. Are  strictly provided for educational purposes only. As always ,trade at your own risk and analysis.

https://forexcapitalexperts.com/services

GBPUSD W1 12 03 2020 1734

 

In relative confluence, although due to time this isn’t so much the case anymore, lies the trend-line from the 2007 high. Regardless of whether it is in exact confluence or not, it is an important threshold that on a intra-week basis has been crossed. The key will be whether it can close above it to count as a break.

That will be one positive, but to really get cable trading higher we need to see a closing weekly candle above 13514. A close above major horizontal resistance and the long-term trend-line could clear a path for much higher prices.

The next significant area to worry about in that case might not arrive until the 2018 highs in the vicinity of 142/4400. However, resistance is resistance until it’s not, and that means we could still see another turn lower. An outcome towards lower levels appears likely to be less decisive than a breakout would be.

The bottom line is that GBP/USD is trading near a big level that could have a significant hand in how we shape our trading bias for the foreseeable future. Brexit talks appear to be nearing their end so we may have that resolution very soon.

 

Forex, Commodities signals
Subscribe now to get our exclusive forex signals
Contact our advisors through website chat 24/7 

https://forexcapitalexperts.com/services

 

 

Spot Silver 20201118 08.54

Silver prices continue to struggle so far this week despite a lackluster US Dollar. Since the monthly high on November 9, XAG/USD is down nearly 5%. Meanwhile, the US Dollar (DXY) gained only 0.25%. Generally precious metals, like gold and silver, tend to perform well during periods of USD weakness.
A quick look at technicals on XAG/USD’s daily time frame sees silver near trendline support from its 2020 low. The 100-day Simple Moving Average is also looking to keep the focus towards the upside. A break under these would likely send a bearish signal on the precious metal, perhaps opening the door to reversing much of this year’s earlier bullish action.

 

 

Forex, Commodities signals
Subscribe now to our exclusive commodities signals

https://forexcapitalexperts.com/services

Our Partners

logo ms capital consulting   pawlogo5

Payments

formas de pago