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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Forex News Timeline

Friday, November 16, 2018

EUR/USD was trodden down overnight over Brexit turmoil with UK ministers quitting their positions in protest to PM May's negotiated deal with the EU t

EUR/USD has fallen back to a low of 1.1321 as profits are taken out of the rally from 1.1271 European lows. EUR/USD has been choppy and weighed upon due to Brexit headlines and a wider IT-DE and DE-US yield spread.EUR/USD was trodden down overnight over Brexit turmoil with UK ministers quitting their positions in protest to PM May's negotiated deal with the EU that effectively does not meet the UK's electorate's vote.Key Brexit headlines:PM vows to fight on: 'Am I going to see this through? Yes'. Four ministers quit Government over Brexit deal. Dominic Raab and Esther McVey resign from Cabinet. Michael Gove offered the job of Brexit Secretary. Gove will only take it if he can renegotiate PM's deal. Jacob Rees-Mogg submits a letter of no confidence. Tory MPs could trigger a vote of no confidence in PM.What no-confidence vote means for Brexit and Pound?The threat of a challenge to PM May's authority plunges European politics into higher levels of uncertainty.  It increases the chances that the U.K. will exit with no deal at all, risking significant economic disruption for both sides of the deal. Time is running out to negotiate a divorce deal with the European Union before the U.K.’s looming exit in March 2019, and Brexit turmoil is roiling broader financial markets - (EUR trades as a derivative to risk sentiment and was hammered in the European session). US dollar broadly weakerHowever, EUR/USD got a lift when the dollar buckled despite the U.S. Census Bureau US retail sales data in October increasing by 0.8%, exceeding the market's expectations of 0.5%. The move coincided with a reversal on Wall Street that enabled the euro to rally with an unwind in yen longs supporting EUR/JPY's recovery.  There was also some profit taking in the dollar on China/US trade talk news. The headlines that China had moved a piece on the chess board in the Us favour started to lift risk appetite. However, Beijing's bid to appease Washington is probably too little too late. However, due to broadly dire global economic and political conditions, US growth could be hampered which is subsequently impeding on the dollar's advance in an already crowded trade. Meanwhile, domestically and looking ahead, the eurozone October inflation report should see core CPI unchanged at around 1.1% but a miss to the downside will likely remind markets of the divergence between the Fed and other Central Banks falling in favour of the greenback again - EUR/USD is faded ahead of the release, settling in North America at 1.1328. EUR/USD levelsSupport levels: 1.1280 1.1250 1.1215   Resistance levels:  1.1355 1.1390 1.1425 Valeria Bednarik, Chief Analyst at FXStreet explained that the EUR/USD pair trades marginally up for the day, above the 38.2% retracement of its latest daily decline, with a mild-positive tone in its 4 hours chart: "The price bounced quickly after testing its 20 SMA, while technical indicators resumed their advances, maintaining their upward slopes in positive ground but below early highs. Additionally, the pair remains below firmly bearish 100 and 200 SMA. The 50% retracement at 1.1355 is still in the way for a steeper recovery, while the bearish risk will increase on a break below 1.1250, with scope then to retest the yearly low at 1.1215."
   

Following earlier reports that US Secretary of Commerce Wilbur Ross affirmed America's plan to increase Chinese tariffs to 25% in January, US Trade Re

Following earlier reports that US Secretary of Commerce Wilbur Ross affirmed America's plan to increase Chinese tariffs to 25% in January, US Trade Representative Robert Lighthizer is backpedaling amidst criticism, claiming that he never explicitly said that the next tranche of US tariffs on China was on hold amidst rising potential for talks between the countries. It was heavily inferred from a meeting between leading business executives and Lighthizer that the US was putting the next stage of the Sino-US trade war on hold as the two sides look closer to returning to the negotiating table, and Lighthizer's earlier hints at easing trade tensions have been torpedoed.

S&P500 daily chart The S&P500 an inverse head-and-shoulders pattern, which can potentially be bullish. The RSI is turning bullish, while the MACD

S&P500 daily chartThe S&P500 an inverse head-and-shoulders pattern, which can potentially be bullish.The RSI is turning bullish, while the MACD and Stochastic are already in positive territories.  S&P500 4-hour chartThe S&P500 found strong support at the 2,680.00 level as the bulls reclaimed the 50-period simple moving average (SMA). Technical indicators are picking up speed suggesting continued bullish momentum. The bull target is at 2,820.00 swing high. A bear breakout below 2,680.00 would be considered rather bearish.  S&P500 30-minute chartThe market is almost in full bullish mode on the 30-minute chart. The S&P500 broke above the 50 and 100 SMA while technical indicators are in positive territories. 
Additional key levels at a glance:

  SP 500 Overview:
    Last Price: 2733.25
    Daily change: 3.2e+3 pips
    Daily change: 1.17%
    Daily Open: 2701.75
Trends:
    Daily SMA20: 2730.8
    Daily SMA50: 2816.8
    Daily SMA100: 2831.22
    Daily SMA200: 2768.04
Levels:
    Daily High: 2748
    Daily Low: 2686.5
    Weekly High: 2818.75
    Weekly Low: 2713.5
    Monthly High: 2939.5
    Monthly Low: 2604.5
    Daily Fibonacci 38.2%: 2709.99
    Daily Fibonacci 61.8%: 2724.51
    Daily Pivot Point S1: 2676.17
    Daily Pivot Point S2: 2650.58
    Daily Pivot Point S3: 2614.67
    Daily Pivot Point R1: 2737.67
    Daily Pivot Point R2: 2773.58
    Daily Pivot Point R3: 2799.17  
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