November 09th Daily Analysis
November 09th Daily Analysis
U.S. DOLLAR INDEX (USDX)
The dollar declined during the morning sessions, as traders await the results of the U.S. midterm elections. In addition, the inflation data could disappoint hopes for a slowdown in rate hikes.
The greenback has been under downward pressure from bets on the Federal Reserve easing back on interest rate rises and China reopening and driving growth. Meanwhile, the U.S. dollar index is down about 0.9% so far this week and hovered at 109.73 during the Asian trades.
The dollar index broke below the support and neckline at 109.90 reaching 109.40. However, breaking the resistance between 109.40 and 109.20 will most likely lead to a drop towards 107.50 on the daily chart. Technical indicators also show selling pressure while MACD specifically is showing convergence and further decline.
Pivot Point: 109.55
The Euro rose to over six weeks high against the weakening Dollar and traded at 1.1006 which can be seen as a resistance level on the hourly chart. However, the chart is not showing strong signs of further advancement. Meanwhile, the daily chart signals a possibility of a rise in case of confirming the penetration of the parity levels.
On the other hand, the hourly chart shows a possibility of fluctuations below the level of 1.0100 while technical indicators signal a decline.
Pivot Point: 1.0070
SPOT GOLD (XAUUSD)
Gold prices jumped to a one-month high on Wednesday, benefiting from resurgent safe-haven demand and a weakening dollar as investors awaited the results of the U.S. midterm elections, with broader metal prices also gaining. Spot gold traded above $1,700 for the first time since early October, rising to $1,712 an ounce, while gold futures edged up to $1,716 an ounce.
The hourly chart shows a horizontal movement between the levels of 1,705 and 1,715 above the steep 20 candles moving average. Technical indicators show a possible decline as RSI is at 70 and MACD shows divergence with a possibility of decline.
Pivot Point: 1,710
WEST TEXAS CRUDE (USOUSD)
Oil prices slid on Wednesday as industry data showed U.S. crude stockpiles rose more than expected and on worries a rebound in COVID-19 cases in top importer China would hurt energy demand.
Brent crude futures fell 0.5% to $94.92 a barrel, while WTI crude futures fell0.6% to $88.38 a barrel.
According to American Petroleum Institute figures, the U.S. crude oil inventories rose by about 5.6 million barrels for the week ended November 4.
WTI declines to 87.50 which is considered as major support, breaking this level might lead to a drop towards 84.85 on the hourly chart and 76.10 on the daily chart. However, technical indicators on both time frames show a resilience with a probability of a rebound.
Pivot Point: 88.00
Bitcoin prices fell over 10% on Wednesday, with the broader crypto market in freefall after a potential bankruptcy in the world’s second-largest crypto exchange FTX soured sentiment towards the space, with a bailout offer by Binance doing little to soothe losses.
Bitcoin traded 10.2% lower at $18,488.5, after briefly sinking to $17,260- its weakest level in 2022. On the other hand, Ethereum fell 15.1% to $1,330.26, also briefly touching a one-month low.
Pivot Point: 18,250