Trade Wars Escalate, What's Next

Updated 10:17AM 20/11/2019


JPY and CHF are the top G10 FX gainers today, up 0.11% and -0.07% vs the dollar while SEK and NOK are the top losers, down -0.67% and -0.66% vs the dollar. Sterling and FTSE100 remained firm as investors bet on a Conservative Party majority in the general elections on 12th December. In our view, the short-term risk to the pound is skewed to the downside amid slowing UK Growth and weak global economic outlook The U.S. Dollar rose after the U.S. President Trump warned a trade war escalation and U.S. Senate backed Hong Kong protesters. In the Asian equities space, the Nikkei 225 closed down -0.62% at 23,148.57, Hang Seng closed -0.75% at 26889.61 and Kospi ended -1.3% at 2125.32. The European equities were trading weaker with the FTSE down -0.86% at 7261.16, DAX down -0.78% at 13117.4, and CAC down -0.54% at 5877.19. In the rates market, global yields were trading weaker; the US 10-year yield was trading at 1.7431% and the Bund 10-year yield trading at -0.375%. In the energy space, the Brent (front month) is trading down (-0.21%) for the day at $60.78

 

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Daily Pivots for Key Currency Pairs

 
 

Economic Calendar

 
 

10-year Yields Chart (6-month)

 
 

Brent Front Month Daily Chart (6-month)

 
 

USD-Index Daily Chart (6-month)

 
 

(Content and Data by Tradermade)

 

Major Currency Pairs

 

EURUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.1094 for 1.1000
Short-term view: EUR/USD resistance at 1.1094, MACD and RSI are weak. Hence, we see a move to 1.1037, likely 1.100. Above 1.1094 to open 1.1136.

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.2950, for 1.2850
Short-term view: GBP/USD resistance at 1.2950, MACD and RSI are weak. We see dip to 1.2850, likely 1.2802. Above 1.2950 to open 1.3000.

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 108.96 for 108.01
Short-term view: USD/JPY has resistance around 108.96, MACD and RSI are weak. Hence, we see a move lower to 108.01, likely 107.64. Above 108.96 opens 109.47.

 

AUDUSD Chart (Two-week)

 
 

Strategy: Resistance at 0.6833 for 0.6780
Short-term view: AUD/USD MACD and RSI are weak and resistance at 0.6833. A move towards 0.6700. Above 0.6833 to open 0.6862.

 
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