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Andreas Zanin
Analysis | November 13, 2020

KTM FX Dialy: Chart pack; USDJPY and Gold setups;

Cryptos

Finally, Bitcoin settles above the $16,000mark for the first time since 2018. Among the lot, Dashcoin rallied nearly 8% overnight. As shown in the chart below $55 is the deciding level for the bulls. As long as $55 is supported, the price would breakout higher through $72. In this case, $77 and $80+ are the next destinations.

EUR crosses offering better trade setups

Undoudebtly the common currency has the best-performing currency in the G10 currency bloc with 6% against the dollar. But the Eur gains only 2% against the Aussie dollar. Before rallying to 1.63, the price action re-tested the support base spread between 1.6100-1.6000 and charged the direction. If you are bullish EUR against the AUD, 1.5960 is the last hope for bulls.

EURGBP traced out a triple bottom at 0.8860. As long as this is support, watch out for 0.9070 and 0.9150.

Read the full EURGBP article on our KTM blog

EURNZD is in the process of forming a triple bottom. On Thursday, the price action tested the 200EA on the weekly chart and resuming a bouncing action. Since December 2018, the 200MAs acted as main support. Now the 200MAs spread between 1.7040 and 1.6890. If the cross the moving higher, 1.7440-1.7500 is the next destination.

EURUSD traced out a double bottom but caught in a range trading. As the US 10year bonds climbing higher, EUR could take a step back against the dollar.

Since Pfizer’s Vaccine announcement, safe-haven currencies CHF and JPY are witnessing selling pressure. Among USD crosses USDJPY is our favorite as long as US 10-year yields are climbing higher.

USDJPY has been successfully holding the 200MA on the monthly chart. As shown in the below longer-term chart, since March 2018, eight times the price tested and closed above the 200MA but failed to closed above 50MA. Now the 50MA is located at 109.90. An interesting fact is the price lost the 100MA in July 2020. So as long as the 200MA is supporting the cross, 108.00 and 109.90 are the next targets in the near term.

The Asia currency SGD manages to hold the parallel support so far this week and tracing a triple bottom. The daily RSI has been painting a positive divergence and the weekly oscillator is remaining bullish. A decisive breakout and close above 1.3525 would allow the Singapore dollar to depreciated towards 1.3700-1.3750 levels (earlier left and right shoulders on the daily chart).

The Turkish Lira cheers the Finance Minister Berat Albayrak’s resignation.  The cross lost height rapidly and closed below the first support on Thursday. Lira gains 10% but still down -29% YTD.

After witnessing a dream rally for near five months, the price of Gold finally shifts the pattern to a range trading between $1848-$1975. Lower interest rates created by the pandemic and the falling dollar were the key factors behind the recent Goldrush. Fast-forwarding to the current date the US10 year yields jump to the highest 0.98% from 0.50% and Vaccine news put a lid on the top.

Turning to technicals the 14-day RSI lost momentum but the oscillator is remaining bearish. A move below $1848 needed to retrace towards sub-$1800 levels. The 200MA spread between $1795-1784 and the 50MA on the weekly chart is located at $1737. These are the next destinations to watch out for if the price lost the  $1848 level. Dip buying remains the big theme whether we have vaccines or not.

Happy weekend.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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