Blog
Date - 22th, November, Friday, 2024
01 - Key News Insights
Putin Warns of Escalation Toward Global Conflict Amid Ukraine Tensions:
- Putin has raised alarms about the Ukraine conflict escalating into a global confrontation, attributing it to Ukraine’s use of US- and UK-supplied weapons for strikes inside Russia.
- In response, Russia launched a new hypersonic medium-range ballistic missile targeting a Ukrainian military facility, with further strikes hinted.
Geopolitical Implications:
- The remarks underscore the growing tension between NATO-backed Ukraine and Russia, raising fears of broader conflict spillover.
Elon Musk slams Australia’s proposed Social media ban for children:
- The billionaire owner of X (formerly Twitter) has expressed concerns about a proposed Australian law that would restrict social media access for children under 16 years old.
- The law includes significant penalties, with platforms facing fines of up to A$49.5 million (approximately $32 million) if they fail to prevent systemic breaches, particularly in protecting young users.
The Dollar Index (DXY)
- The U.S. Dollar Index (DXY) saw little movement, hovering around 106.50, following remarks from Federal Reserve official John Williams.
- U.S. Jobless Claims data came in lower than expected, indicating a stronger labor market, which typically supports the dollar’s strength.
- While jobless claims were positive, Manufacturing data raised investor concerns, adding to the uncertainty about the economy’s health.
EUR/USD
- EUR/USD remains weak, trading at its lowest level since October 2023, falling below 1.0500 early Friday, mainly due to the ongoing strength of the USD.
- The strong USD continues to pressure the Euro, driven by favorable U.S. economic data and investor sentiment.
- Market participants are closely watching the upcoming Manufacturing and Services PMI surveys from the Eurozone, Germany, and the U.S., as these reports may influence future currency movements.
GBP/USD
- GBP/USD declines for the third consecutive session, trading at a fresh six-month low below 1.2600, reflecting pressure from the stronger USD.
- Investors are closely watching these developments to gauge Fed policy outlook, with potential implications for the USD and consequently for the GBP/USD exchange rate.
- The main driver behind the pair’s downside is the strength of the USD.
02 - Economic Calender
03 - Previous Day Performance
04 - Instructions/Guidelines for executing suggested trade
- Close your trades within 8-10 hours or before 6:30 PM UTC (midnight IST), regardless of profit/ loss.
- By chance, if you face losses in your “Primary Trade”, the “Alternative Call” is designed to recover those losses.
- That’s why, always place the “Alternative call” alongside the “Primary Call”.
- In case the “Alternative or Recovery Call” doesn’t get triggered the same day, a new call (or signal) will be provided the following day.
- Generally, the Global Market Outlook Report includes signals with a higher reward-to-risk ratio (from 2:1 and higher).
- Therefore, consider booking partial profits in steps as follows:
For example, if the reward is two times the risk (or 2:1), consider booking half (or 50%) of the profit when levels reach a 1:1 ratio, and maintain the remaining position.Then, when prices reach twice the risk (2:1), book the remaining 50% position.
To make this process seamless and smooth, consider placing two calls simultaneously with the same Stop-Loss (SL) and Entry-Level but different Target-Levels.
Note: These guidelines aim to optimize your trading strategy while managing risks effectively.
05 - Gold Analysis
Overview: Gold’s primary trend is bullish, despite earlier weakness and selling pressure following a head and shoulders pattern. After reversing from the strong support at 2530, prices broke resistance and tested the immediate resistance at 2700. A pullback to 2685 is possible before further buying pushes prices toward 2720.
Biasness: Gold continues to attract haven flows for the fifth consecutive day and rises toward $2,700. XAU/USD continues to benefit from risk-aversion amid intensifying Russia-Ukraine conflict.
Key Levels: R1- 2700 R2- 2720
S1- 2680 S2- 2645
Technical Analysis: RSI is above 50 approaching bullishness and 50 day moving avg suggesting bullishness 0.5 fib suggest prices could reverse again follow the trend.
Data Releases: CAD retail sales and data is due for the day 0.4% is expected if figure exceed than bullishness could be expected in gold price.
Alternative Scenario: If gold price moves down or breaches the immediate support level at 2680 then bearishness can be expected.
While writing the report, gold is trending at 2698
06 - Crude Oil
Overview: The major trend of oil is Bearish. On the 1-hour chart, crude oil prices have moved from 68.80 to 70.50, signaling strength. If the price breaks above the 70.50 resistance level, it could continue its upward momentum.
Biasness: Oil prices are trading around 70.20 in Asian trading on Friday. Geopolitical tensions between Russia and Ukraine could further drive up oil prices.
Key Levels: R1: 70.50 R2:71.00
S1: 69.50 S2: 69.00
Indicator: Oil prices are currently trading above the middle Bollinger Band at $70.00. Oil may rise further to test the upper Bollinger band at 70.50
Data Release: Traders are waiting for US Baker Hughes Oil Rig Count data today. If the number exceeds the previous figure of 478, it suggests more drilling rigs are in operation, likely due to higher demand for oil.
Alternative Scenario: If Oil breaches an immediate support mark of $69.50 and trade below the middle Bollinger band, then a short term bearish view can be expected.
While writing the report, Oil is trading at 70.20
07 - CHF JPY
Overview: The primary trend on the 4-hour chart is consolidated. However, on the 1-hour chart, traders may go long according to the price action analysis. The recent candles have breached the highs of previous candles making a long opportunity.
Biasness: CHF/JPY is hovering near the critical 175 level, a psychologically significant point where buyers could step in to drive prices higher toward 177 or beyond. However, if this level is breached, further downside movement may follow. Traders are monitoring for clear signals to confirm the next trend direction.
Key Levels: R1: 174.89 R2: 175.96
S1: 174.100 S2: 173.84
Indicator: RSI is approaching buying zone after being in over selling zone giving potential indication to buy.
Macro-Economic Factors: Japan National Core CPI got released today which came out to be better than expected making JPY Strong but it didn’t have much impact on the CHFJPY pair.
Alternative Scenario: Prices should breach the support at 174.100 and candles should be formed below 9 EMA then traders can go short.
While writing the report, the pair is trending at 174.62
08 - Disclaimer
- CFD trading involves substantial risk, and potential losses may exceed the initial investment.
- Signals and analysis are based on historical data, technical analysis, and market trends.
- Past performance does not guarantee future results; market conditions can change rapidly.
- Consider your risk tolerance and financial situation before engaging in CFD trading.
- Signals are for informational purposes only and not financial advice.
- Each trader is responsible for their decisions; trade at your own risk.
- The report does not consider individual financial situations or risk tolerances.
- Consult with financial professionals if uncertain about the risks involved.
- By accessing this report, you acknowledge and accept the terms of this disclaimer.
Safe trading,
Market Investopedia Ltd
