2020-11-23 • Updated
The pound gained due to upbeat UK’s PMI and vaccine news. Let’s analyze the chart.
Today is the day of PMI reports from EU countries, the UK, and the USA. The Eurozone PMI report came out mixed: the growth of the manufacturing industry slightly exceeded expectation, whereas services rose less than expected. There is no surprise as bars, restaurants, and businesses in the hospitality and tourism sectors have really tough times these days. Bloomberg has even claimed that the fresh virus resurgence pushed the euro area into another contraction. At the same time, UK’s PMI reports beat estimates.
UK Prime Minister Boris Johnson claimed that he is ready to make a political intervention to boost the Brexit development. His aim is to reach a deal by the next week. That news increased the demand for the pound as well as the optimistic vaccine report of the AstraZeneca/Oxford University. In comparison with vaccines of Moderna and Pfizer, this one has a lower efficacy rate but still offers many advantages. It’s cheaper, faster to produce, and easier to store.
The vaccine news and upbeat UK PMI reports drove the GBP higher, and therefore EUR/GBP lower. The pair is trading inside of the descending channel. Today it has reached the strong support of 0.8870, which it has failed to reach many times this year, that’s why the price pulled back. If it jumps above the high of October 10 at 0.8930, it may rise to the next resistance of 0.8957. Support levels are 0.8870 and 0.8850.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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