Daily Market Analysis

Looking ahead, highlights from macroeconomic calendar include UK retail sales, Eurozone consumer confidence, ECB's Lagarde, Fed's Kaplan, Barkin, George speeches.

Dow Jones ended lower following late-day selling Wednesday on signs of further Covid-19 restrictions in the U.S. that threaten the pace of the recovery, and an intraday reverse in Boeing. Asian bourses were mixed as the region partially shrugged-off the risk-averse mood that rolled over from US where early vaccine optimism faded amid COVID-19 concerns.

EUR/USD fell below 1.1850 after reaching 1.1920 on Monday. The pair consolidated after the initial bearish move.

After a wide consolidation during the US vote count, XAU/USD has managed to close above $1 915 on the H4 (50-day MA).

USD/CAD remains within a downtrend. As a result, selling the pair as it turns down from resistance is the best strategy. Support lies at 1.3125.

CHF/JPY retraced 61.8% of its August-September decline, corrected down, formed a higher low above the 100-day MA and now seems eager to rise to the 78.6% Fibonacci level at 116.90.

U.S. stock markets opened higher on Monday, buoyed by hopes for a last-minute agreement on a comprehensive fiscal stimulus package before the elections on November 3.

EUR/AUD formed a candlestick with a long upper shadow on the D1. The pair is currently testing levels below the 50- and the 100-period moving averages.

USD/JPY formed a higher low at the end of last week.

XAU/USD formed a “hammer” candlestick on the D1 ahead of the 100-day MA. The price made a higher low on the H4 and now only the resistance at $1 877 separates the precious metal from further gains.

EUR/USD has turned up from the 50-day MA at 1.1715 yesterday. This is a sign that buyers are strong. Still, the short-term resistance line limits the upside at 1.1870.

USD/JPY is declining for the fifth day in a row. When the pair fell below 105.00, it entered a new, lower range.