Market Update by Solidecn.com

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Gold Technical Analysis

Gold price tests the key support 1746.4 and keeps its stability above it until now, which keeps the bullish trend scenario valid for the upcoming period, supported by the EMA50, waiting to resume the bullish bias to visit 1765 initially. On the other hand, we should note that breaking 1746.4 and holding below it will stop the positive scenario and push the price back to the correctional bearish track again, to head towards testing 1721.65 areas initially.



The expected trading range for today is between 1735 support and 1775 resistance, and the expected trend for today is Bullish.

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GBPUSD Technical Analysis


The GBPUSD pair fluctuates within tight track since morning, which keeps the bullish trend scenario valid as it is without any change, depending on the price stability above 1.1990, supported by stochastic approach to the oversold areas, reminding you that we are waiting to rally towards our next positive target that reaches 1.2260.





The expected trading range for today is between 1.2030 support and 1.2210 resistance, and the expected trend for today is Bullish.

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XAUUSD - The possibility of growth remains.


On the daily chart, the downward correction has ended as the fourth wave of the higher level (4), within which wave C of (4) has formed as an impulse and the development of the fifth wave (5) has begun. At the moment, the first wave of the lower level 1 of (5) is being built, in which wave iii of 1 formed and corrective wave iv of 1 ended.


It is predicted that the quotes of the XAUUSD pair will continue their upward dynamics in the area of 1808.08 - 1881.56. The level of 1720.15 is critical and stop-loss for this scenario.

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USDJPY - The asset is in correction, the probability of the fall is maintained.

On the daily chart, the third wave of the higher level 3 has completed and a downward correction is being formed as the fourth wave 4. At the moment, a wave of the lower level a of 4 has already appeared and a local correction is developing as a wave b of 4.

It is predicted that the quotes of the USDJPY pair will fall to the area of 133.2 – 127.36. The level of 146.42 is critical and stop-loss for this scenario.

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Euro hovers near four-month high on US interest rate prospects


Euro rose in European trade against a basket of major rivals for the third straight session against dollar, almost hitting four-month highs amid fading concerns about the widening policy gap between the US and Europe. The dollar fell to near three-month lows under pressure from Fed's minutes, which bolstered the case for a 0.5% rate hike in December.


EURUSD rose 0.5% to 1.0448, after closing up 0.9% yesterday, the second profit in a row, as risk appetite improved.





Four-Month Peak


Euro hit four-month highs at 1.0481 on November 15 before entering a descending wave on profit-taking.
Current gains amid fading concerns about the policy gaps between the US and Europe, with the ECB expected to increase interest rates by 75 basis points in December.
It's now also widely expected the Fed will increase rates by only 0.5% next month instead of 0.75%.




The Dollar


The dollar index fell 0.4% on Thursday, sharpening losses for the third day in a row, and hitting three-month lows at 105.34 against a basket of major rivals.


Fed's minutes yesterday showed US policymakers are content about the slowdown in inflation, and are moving toward smaller rate hikes.

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AUDUSD - Growth is possible.


On the daily chart, the first wave of the higher level (1) formed, a downward correction ended as the second wave (2), and the development of the third wave (3) started. Now, the first entry wave of the lower level i of 1 of (3) is forming, within which the wave (iii) of i is developing.


If the assumption is correct, the AUDUSD pair will grow to the area of 0.6916 – 0.7142. In this scenario, critical stop loss level is 0.6572.

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Gold hovers near two-week lows ahead of Fed's minutes

Gold prices settled in European trade in a tight range of trading near two-week lows as investors shun new positions ahead of the Fed's last meeting minutes. The minutes will provide clues on the future of US monetary policy and the pace of interest rates.



Prices Today

Gold prices traded around $1,738 an ounce as of 08:55 GMT, with a session-high at $1,745. Gold prices closed Tuesday over 0.1% higher, the first profit in five sessions away from two-week lows at $1,732.50.




The Fed

As of 19:00 GMT, the Federal Reserve will release the minutes of the November 1-2 meeting, at which policy makers voted to increase interest rates by 75 basis points for the fourth time in a row to 4%, the highest since December 2007. The Fed asserted back then the fight against inflation requires continuous increases in borrowing rates until consumer prices are brought under control.



Interest Rate Prospects

Markets now are pricing a 75% chance of a 0.5% rate hike in December, and a 25% chance of a 0.75% rate hike.





Estimates

Markets remain a bit jittery ahead of Fed's minutes, with some analysts expecting some modest gains for gold prices until year's end as the dollar weakens gradually.



The SPDR

Gold holdings at the SPDR Gold Trust rose 0.87 tones yesterday, the second increase in a row to a total of 906.93 tones, the highest since November 14.

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Silver Price Tests the Key Resistance


Silver price continued to rise to test 21.30 resistance line, and bounced downwards clearly from there, to support the continuation of the bearish trend domination, waiting to test 20.72 level initially, which breaking it represents the key to rally towards 20.25 as a next correctional target. Therefore, we will continue to suggest the bearish trend for the upcoming period unless the price rallied to breach 21.30 and hold above it.


The expected trading range for today is between 20.50 support and 21.30 resistance, and the expected trend for today is Bearish.

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EURJPY Provides Positive Signal


The EURJPY pair stared today by forming bullish wave, surpassing 145.65 barrier to hint getting rid of the negative pressures and start resuming the main bullish attack on the near term and medium term period. In case the price got a positive close above the breached barrier and getting continuous positive momentum by the major indicators, we expect to target 146.20 followed by reaching 147.1 levels, while turning back to fluctuate below 145.65 might force it to suffer some losses by crawling towards 144.5.





The expected trading range for today is between 145.5 and 146.2, and the expected trend for today is Bullish.

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GBPJPY Technical Analysis


The GBPJPY pair provided new bullish rally yesterday, to touch 168.3 level and confirm its surrender to the domination of the bullish bias by moving away from the additional support at 166.8, reminding you that the fluctuation within the bullish channel and the major indicators that provide the positive momentum allow us to suggest more bullish attempts, to surpass 169 obstacle and move towards the next main station at 170.2.





The expected trading range for today is between 167.40 and 169, and the expected trend for today is Bullish.