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. Stock Market

Last: 29,872

Pivot: 29,570

Review:

U.S. markets were closed for Thanksgiving on Thursday and will resume for a shortened session on Friday.

Technical comment:

Technically, the Dow Jones RSI is above its neutrality area at 50.

Preference scenario:

Long positions above 29,570 with targets at 30,120 & 30,400 in extension.

Alternative scenario:

Below 29,570, look for further downside with 29,230 & 28,900 as targets.

Resistance 30,120 30,400 30,750
Support 29,570 29,230 28,900
Markets dormant as the US cuts pumpkin pie
USD/JPY

Last: 104.24

Pivot: 104.45

Review:

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.

Technical comment:

The RSI advocates for further downside.

Preference scenario:

Short positions below 104.45 with targets at 104.10 & 103.90 in extension.

Alternative scenario:

Above 104.45, look for further upside with 104.60 & 104.75 as targets.

Resistance 104.5 104.60 104.75
Support 104.10 103.90 103.65
Markets dormant as the US cuts pumpkin pie
Gold

Last: 1,809.32

Pivot: 1,820

Review:

Gold has rallied slightly on Thursday, but it is a major holiday in the United States, so it would have been thin electronic trading.

Technical comment:

As long as 1820.00 is resistance, look for choppy price action with a bearish bias.

Preference scenario:

Short positions below 1820.00 with targets at 1800.00 & 1791.00 in extension.

Alternative scenario:

Above 1820.00, look for further upside with 1833.00 & 1841.00 as targets.

Resistance 1,820 1,833 1,841
Support 1,800 1,791 1,785
Markets dormant as the US cuts pumpkin pie
Oil

Last: 44.94

Pivot: 45.55

Review:

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.

Technical comment:

The RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 45.55 with targets at 44.70 & 44.20 in extension.

Alternative scenario:

Above 45.55, look for further upside with 45.85 & 46.25 as targets.

Resistance 45.55 45.85 46.25
Support 44.70 44.20 43.80
Markets dormant as the US cuts pumpkin pie
EUR/USD

Last: 1.1911

Pivot: 1.1920

Review:

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.

Technical comment:

The upward potential is likely to be limited by the resistance at 1.1920.

Preference scenario:

Short positions below 1.1920 with targets at 1.1900 & 1.1885 in extension.

Alternative scenario:

Above 1.1920, look for further upside with 1.1940 & 1.1955 as targets.

Resistance 1.1920 1.1940 1.1955
Support 1.1900 1.1885 1.1870
Markets dormant as the US cuts pumpkin pie
GBP/USD

Last: 1.3351

Pivot: 1.3365

Review:

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.

Technical comment:

As long as the resistance at 1.3365 is not surpassed, the risk of the break below 1.3335 remains high.

Preference scenario:

Short positions below 1.3365 with targets at 1.3335 & 1.3320 in extension.

Alternative scenario:

Above 1.3365, look for further upside with 1.3380 & 1.3400 as targets.

Resistance 1.3410 1.3435 1.3470
Support 1.3360 1.3330 1.3310
Markets dormant as the US cuts pumpkin pie

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