Daily Market Report: November 27, 2020
Today’s events & figures – Trade what you know Financial markets feed into world events and are their direct consequence. Keep a daily eye on our roundup of the day’s news, numbers and announcements.
November 27, 2020
Markets dormant as the US cuts pumpkin pie
U.S. markets were closed for Thanksgiving on Thursday and will resume for a shortened session on Friday.
Technically, the Dow Jones RSI is above its neutrality area at 50.
Long positions above 29,570 with targets at 30,120 & 30,400 in extension.
Below 29,570, look for further downside with 29,230 & 28,900 as targets.
The Japanese yen has posted slight gains in the Thursday session. With US markets closed for the Thanksgiving holiday and Friday an unofficial holiday, we can expect calm waters for USD/JPY for the remainder of the week.
The RSI advocates for further downside.
Short positions below 104.45 with targets at 104.10 & 103.90 in extension.
Above 104.45, look for further upside with 104.60 & 104.75 as targets.
Gold has rallied slightly on Thursday, but it is a major holiday in the United States, so it would have been thin electronic trading.
As long as 1820.00 is resistance, look for choppy price action with a bearish bias.
Short positions below 1820.00 with targets at 1800.00 & 1791.00 in extension.
Above 1820.00, look for further upside with 1833.00 & 1841.00 as targets.
Oil prices retreated a little in light trading on Thursday, with volumes way down due to the U.S. Thanksgiving holiday, but crude was still holding on to almost all its gains in a rally that has seen it rise a spectacular $10 a barrel in the last month.
The RSI is bearish and calls for further decline.
Short positions below 45.55 with targets at 44.70 & 44.20 in extension.
Above 45.55, look for further upside with 45.85 & 46.25 as targets.
The EUR/USD pair trades around 1.1910 after hitting a fresh 2-month high of 1.1940 during London trading hours. Rising Asian equities provided support to the shared currency, although tepid German data and the soft tone of European indexes pushed it down from the mentioned high. Germany published the GFK Consumer Confidence Survey, which contracted to -6.7 in December from -3.2 in the previous month, also missing the market’s expectations.
The upward potential is likely to be limited by the resistance at 1.1920.
Short positions below 1.1920 with targets at 1.1900 & 1.1885 in extension.
Above 1.1920, look for further upside with 1.1940 & 1.1955 as targets.
The GBP/USD pair is down this Thursday, trading around 1.3360 ahead of the Asian opening. The pound was unable to extend its gains beyond 1.3400 against the greenback after the EU’s chief negotiator Michel Barnier threatened to pull off Brexit talks unless the UK is willing to concede on the critical issues. UK Chancellor Sunak said this Thursday that the UK should not be stretching for a Brexit deal at any cost, somehow cooling hopes for a post-Brexit trade deal.
As long as the resistance at 1.3365 is not surpassed, the risk of the break below 1.3335 remains high.
Short positions below 1.3365 with targets at 1.3335 & 1.3320 in extension.
Above 1.3365, look for further upside with 1.3380 & 1.3400 as targets.
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