Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – December 3rd, 2020

Ethereum

Ethereum rose by 1.96% on Wednesday. Partially reversing Tuesday’s 5.02% slide, Ethereum ended the day at $597.35.

A mixed start to the day saw Ethereum fall to an early morning intraday low $575.08 before making a move.

Steering clear of the first major support level at $553.91, Ethereum rallied to a late morning intraday high $604.96

Falling well short of the first major resistance level at $627.34, Ethereum fell back into the red before finding late support.

Late in the day, Ethereum briefly revisited $600 levels before easing back to wrap up the day at $597 levels.

At the time of writing, Ethereum was up by 0.49% to $600.27. A mixed start to the day saw Ethereum fall to an early morning low $596.41 before rising to a high $600.40.

Ethereum left the major support and resistance levels untested early on.

ETHUSD 031220 Hourly Chart

For the day ahead

Ethereum would need to avoid a fall through the pivot level at $592.46 to support a run at the first major resistance level at $609.85.

Support from the broader market would be needed, however, for Ethereum to break out from Wednesday’s high $604.96.

Barring an extended crypto rally, the first major resistance level and resistance at $610 would likely cap any upside.

In the event of another breakout, Ethereum could test resistance at $620 before any pullback. The second major resistance level sits at $622.34.

Failure to avoid a fall through the $592.46 pivot would bring the first major support level at $579.97 into play.

Barring an extended sell-off, however, Ethereum should steer well clear of sub-$570 levels. The second major support level sits at $562.58.

Looking at the Technical Indicators

First Major Support Level: $579.97

Pivot Level: $592.46

First Major Resistance Level: $609.85

23.6% FIB Retracement Level: $495

38.2% FIB Retracement Level: $416

62% FIB Retracement Level: $288

Litecoin

Litecoin rose by 4.47% on Wednesday. Reversing most of a 2.87% fall from Tuesday, Litecoin ended the day at $88.99.

It was also a mixed start to the day. Litecoin fell to an early morning intraday low $82.79 before making a move.

Steering clear of the first major support level at $79.01, Litecoin struck a late morning intraday high $90.63.

Falling short of the first major resistance level at $92.17, Litecoin fell back to sub-$85 levels before finding late support.

A late move back through to $88 levels delivered the upside on the day.

At the time of writing, Litecoin was up by 0.66% to $89.58. A mixed start to the day saw Litecoin fall to an early morning low $88.88 before rising to a high $89.62.

Litecoin left the major support and resistance levels untested early on.

LTCUSD 031220 Hourly Chart

For the day ahead

Litecoin would need to avoid a fall through the $87.47 pivot to support a run at the first major resistance level at $92.15.

Support from the broader market would be needed, however, for Litecoin to break out from Wednesday’s high $90.63.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of another extended breakout, Litecoin could test the second major resistance level at $95.31.

Failure to avoid a fall through the $87.47 pivot level would bring the first major support level at $84.31 into play.

Barring an extended sell-off on the day, however, Litecoin should steer well clear of the second major support level at $79.63.

Looking at the Technical Indicators

First Major Support Level: $84.31

Pivot Level: $87.47

First Major Resistance Level: $92.15

23.6% FIB Retracement Level: $45.30

38.2% FIB Retracement Level: $71

62% FIB Retracement Level: $100

Ripple’s XRP

Ripple’s XRP rose by 3.18% on Wednesday. Partially reversing an 8.05% slide from Tuesday, Ripple’s XRP ended the day at $0.63098.

A bearish start to the day saw Ripple’s XRP fall to a mid-morning intraday low $0.59348 before making a move.

Steering clear of the first major support level at $0.5621, Ripple’s XRP rose to a late morning intraday high $0.63083. The morning rally did see Ripple’s XRP break through the 23.6% FIB of $0.6274 before hitting reverse.

Falling well short of the first major resistance level at $0.6711, Ripple’s XRP fell back to sub-$0.61 levels and into the red.

A late move back through 23.6% FIB to $0.63 levels delivered the upside on the day, however.

At the time of writing, Ripple’s XRP was up by 0.71% to $0.63546. A mixed start to the day saw Ripple’s XRP fall to an early morning low $0.62951 before rising to a high $0.63903.

Ripple’s XRP left the major support and resistance levels untested early on.

XRPUSD 031220 Hourly Chart

For the day ahead

Ripple’s XRP will need to avoid a fall through 23.6% FIB of $0.6274 and the $0.6184 pivot level to support a run at the first major resistance level at $0.6434.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $0.64 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at $0.66 before any pullback. The second major resistance sits at $0.6558.

Failure to avoid a fall through the $0.6184 pivot would bring the first major support level at $0.6060 into play.

Barring another extended crypto sell-off, Ripple’s XRP should steer clear of sub-$0.55 levels. The second major support level at $0.5811 should limit any downside.

Looking at the Technical Indicators

First Major Support Level: $0.6060

Pivot Level: $0.6184

First Major Resistance Level: $0.6434

23.6% FIB Retracement Level: $0.6274

38.2% FIB Retracement Level: $0.5285

62% FIB Retracement Level: $0.3687

Please let us know what you think in the comments below.

Thanks, Bob

USD/CAD Daily Forecast – Another Test Of Support At 1.2930

USD/CAD Video 02.12.20.

Canadian Dollar Attempts To Gain More Ground Against U.S. Dollar

USD/CAD continues its attempts to settle below the support at 1.2930 while the U.S. dollar remains under pressure against a broad basket of currencies.

The U.S. Dollar Index did not manage to settle above the resistance at 91.50 and gained downside momentum. Currently, the U.S. Dollar Index is testing the nearest support level at 91.15. The American currency is under pressure on the foreign exchange market as traders decrease their purchases of safe haven assets on signs that U.S. may finally deliver a new round of economic stimulus.

U.S. Treasury Secretary Steven Mnuchin has recently stated that U.S. President Donald Trump will sign the coronavirus bill proposed by Senate Majority Leader Mitch McConnell, but it remains to be seen whether Democrats will be happy with the deal that they rejected in the past.

If the U.S. Dollar Index declines below the support at 91.15., it will move towards the next support level at 91 which will be bearish for USD/CAD.

Today, the U.S. released ADP Employment Change report which showed that private businesses hired 307,000 workers in November. The report was worse than analyst expectations and highlighted the negative impact of the second wave of virus. Perhaps, the worsening situation on the job front will provide an additional incentive for Republicans and Democrats to reach a compromise deal.

Technical Analysis

usd cad december 2 2020

USD to CAD is currently testing the nearest support level at 1.2930. This support level has already been tested several times in recent trading sessions and proved its strength.

In addition, this support level was tested back in November. At that time, USD to CAD received strong support at 1.2930 and quickly rebounded towards 1.3100.

If USD to CAD manages to settle below this key support level, it will gain downside momentum and get to the test of the next support level at 1.2900.

On the upside, USD to CAD must get above the resistance area at 1.2985 – 1.3000 to have a chance to develop upside momentum. A move above this level will push USD to CAD towards the next resistance near the 20 EMA at 1.3025.

For a look at all of today’s economic events, check out our economic calendar.

S&P 500 Price Forecast – Stock Markets Continue Grind Higher

The S&P 500 has pulled back just a bit during the trading session on Wednesday in the Globex session, but as the cash market opened in New York City, we started to see buyers jump back in. All things being equal, the market is trying to break out to the upside and with monetary policy been so loose it is likely that we will continue to try to go higher. Pullbacks will be supported all the way down to the 3600 level, as it was a large, round, psychologically significant figure that also offer both support and resistance multiple times.

S&P 500 Video 03.12.20

Based upon the measured move from previous trading, we should see about 400 points, from the breakout at the 3600 level. Ultimately, this is a market that should go looking towards the 4000 handle. The 4000 level course will be a psychological level that a lot of people will be paying attention to and I would anticipate that it would be a big reaction just waiting to happen. Ultimately, I think this is a market that will be noisy but there should be plenty of opportunities to get long based upon monetary policy, stimulus, and of course the post vaccine trade.

All things being equal, if we get a Republican Senate confirmed in January, that will keep the US government out of the equation as well and could send this market higher based upon a bit of a “Goldilocks situation.” The 50 day EMA underneath should be massive support as well, ultimately, I think that there is no way to short this market anytime soon. With this, look for value and then take advantage of it.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Forecast – Silver Markets Stalling

Silver markets have gone back and forth during the trading session on Wednesday as we are testing the 50 day EMA. This is obviously a widely followed indicator, so it should not be a huge surprise that we are sitting here. Furthermore, we are right at the $24 level which is essentially in the middle of the overall consolidation, and furthermore we have seen a massive move to the upside on Monday that people will be looking to digest the gains from. Ultimately, I think a short-term pullback is very likely.

SILVER Video 03.12.20

Having said that, the US dollar is on its back foot, and that should continue to boost the value of the silver market as well as other commodities. I think buying on the dips continues to work and people are starting to build up a bit of a potential long-term position. Ultimately, if we can break above the top of the candlestick for the trading session on Wednesday, that also sends this market higher but keep in mind that the next couple of days could be a bit noisy due to the fact that the jobs number comes out on Friday. Between now and then, markets might be a bit quiet but as the EUR/USD pair has broken the massive resistance barrier at the 1.20 level, that suggests that currency moves alone could drive silver higher.

Underneath, the 200 day EMA sits just below the $22 level which is the bottom of the overall consolidation range, so I think in general this is likely to continue to offer a bit of a “floor” in the market going forward. Furthermore, the 38.2% Fibonacci retracement level is in this general vicinity.

For a look at all of today’s economic events, check out our economic calendar.

Crude Oil Price Forecast – Oil Bounces After Rumored OPEC Progress

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially pulled back a bit during the trading session on Wednesday but has rallied despite the fact that there has been less than stellar gasoline builds in the United States. This is because there are rumors flying around that OPEC is making a certain amount of progress in the talks when it comes to production cuts. If that is going to be the case, then it is likely that this market could continue to go higher. All things being equal, the market continues to find buyers underneath and I do believe that we will try to make a move towards the $50 level.

Crude Oil Video 03.12.20

Brent

Brent markets have rallied quite significantly during the trading session as well, as the $47.50 level has offered support, as it was previous resistance. Ultimately, this is a market that should continue to go looking towards the $50 level. The $50 level is of course a large, round, psychologically significant figure, but I think that we probably have more strength going higher and above that level. All things being equal, I think that it is obvious that the “reflation trade” is in fact in full effect, and that should continue to drive oil prices higher. Over the next couple of days, we could see a little bit of volatility, but longer-term I do believe that people will be buying regardless. The 50 day EMA is getting ready to cross above the 200 day EMA, which longer-term traders will be paying attention to.

For a look at all of today’s economic events, check out our economic calendar.

Oil Gets Back Above The $45 Level As Crude Inventories Decline

Oil Video 02.12.20.

Crude Inventories Decrease By 0.7 Million Barrels

EIA has just released its Weekly Petroleum Status Report which indicated that crude inventories decreased by 0.7 million barrels. The recent API Crude Oil Stock Change report indicated that crude inventories increased by 4.1 million but the market typically relies on EIA data.

Gasoline inventories grew by 3.5 million barrels, and it looks like demand for gasoline is set to remain weak in the last month of this year. Distillate fuel inventories increased by 3.2 million barrels.

Interestingly, U.S. domestic oil production grew from 11 million barrels per day (bpd) to 11.1 million bpd. The potential growth of U.S. domestic oil production is one of the main questions for oil traders at the end of this year.

Previously, most analysts, including EIA, believed that U.S. oil production will remain close to 11 million bpd. However, oil managed to get to the $45 level and may move even higher, pushing U.S. producers to increase oil output in order to boost their revenues.

U.S. production has just made its first step away from the 11 million bpd level, but it may gain more momentum in case oil remains above the $45 level.

Norway Will Increase Its Oil Production In 2021

While OPEC+ continues negotiations about the potential extension of current oil production cuts, Norway announced that its production cuts would expire at the end of this year.

Norway is not a member of OPEC+, and its government-mandated production cuts were voluntary.

However, Norway’s decision may complicate OPEC+ negotiations as many OPEC+ members are not happy to watch how their market share is decreasing while others increase their oil production.

The market clearly needs a three-month extension of current production cuts, but even a decision to gradually increase production may also provide some support to prices.

OPEC+ must do everything to avoid a complete failure of current negotiations which may lead to a brutal sell-off. OPEC+ members will resume their negotiations tomorrow, and oil will likely be very volatile during the remaining trading sessions of this week.

For a look at all of today’s economic events, check out our economic calendar.

Natural Gas Price Forecast – Natural Gas Continue to Consolidate

Natural gas markets initially tried to rally during the trading session on Wednesday but pulled back a bit from this downtrend line that I have drawn on the chart. The $3.00 level above is significant resistance, and we have pulled back from that area that was a previous gap. Ultimately, I do think that the 50 day EMA flattening out suggests that the market is trying to figure out where to go next, but at this point in time if we can break above the $3.00 level, we would then go looking to fill that gap. Ultimately, I think that the market not only break that level but goes higher.

NATGAS Video 03.12.20

On pullbacks at this point in time natural gas should be relatively well supported due to the fact that the cold weather is certainly still going to be an issue in January, but we have a few more weeks before we see some type of selloff due to the cyclicality trade. At this point, I think that we could make an explosive move to the upside and go looking towards the $3.40 level. Whether or not we can break above there is a completely different question. As far as selling is concerned, I simply have no interest in doing so anytime soon, but once we start trading the spring contracts, I would be more than willing to do so.

This contract currently is the January contract, which is probably one of the highest demand months out of the year. That being said, one drag on demand is the fact that the economy in the United States is slowing down but the heating demand is still going to be there.

For a look at all of today’s economic events, check out our economic calendar.

Gold Price Forecast – Gold Markets Sluggish But Still Look Bullish

Gold markets have rallied slightly during the trading session on Wednesday but have given back some of the extensions of gains. That being said, the market is likely to see pullbacks that will be bought into. The 200 day EMA which crossed during the previous session, so it should offer a certain amount of support. Alternately, if we break above the top of the candlestick for the trading session on Wednesday, that could be a buying opportunity as well. Keep in mind that the US dollar continues to see massive amounts of selling, and that could continue to put upward pressure on gold.

Gold Price Predictions Video 03.12.20

Furthermore, there seems to be the massive “reflation trade” out there, and therefore I think it is very likely that we will continue to see commodities go higher. Ultimately, if the US dollar continues to fall from here, it is very likely that commodities in general will get a bit of a boost. The next major resistance level is closer to the $1850 level, and that of course we have the 50 day EMA above there. All things been equal though, this is a market that probably has to spend a certain amount of time building up a bit of a base in order to go long again.

Longer-term, I believe that gold has a bright future, due to the fact that central banks around the world continue to loosen monetary policy and it is not just the Federal Reserve at this point. Underneath, I believe that the recent lows will continue to be supportive, as we have seen such a nice three bar reversal at this point in time.

For a look at all of today’s economic events, check out our economic calendar.

Visa Could Rally 40% in 2021

Dow component Visa Inc. (V) price action has tracked the evolution of world economies during the COVID-19 pandemic, with credit and debit card spending plunging in the first quarter and recouping a good share of losses during the second and third quarters. Surprisingly, U.S. sales numbers are ticking higher in the fourth quarter despite surging infections around the world, forcing analysts to lift 2021 growth targets, especially in the United States.

Visa Breakout Pattern

Better yet, Visa has completed the last stage of a cup and handle pattern, with a breakout having the potential to lift the digital payments giant at least 30% to 40% in 2021.  Accumulation readings have already hit new highs, highlighting growing optimism about economic growth under a Biden administration. Even so, the winter of 2020 – 21 could throw a few curveballs, especially if hospitals get overwhelmed or the U.S. election dispute takes an unexpected turn.

Visa reported that November spending levels were similar to October on Wednesday, with U.S. payments volume up 6% year-over-year. Debit rose a healthy 19%, highlighting the switch from paper checks to digital transactions for everyday goods, while Credit declined 5%, indicating that more customers were using savings to pay for things. Unfortunately, other countries didn’t fare as well, with the United Kingdom, Italy, and Germany reporting lower payment volumes.

Wall Street And Technical Outlook

Wall Street has been wildly bullish on Visa for years, with a current ‘Strong Buy’ rating based upon 14 ‘Buy’ and 4 ‘Hold’ recommendations. No analysts are recommending that shareholders close positions and move to the sidelines at this time. Price targets now range from a low of $195 to a Street-high $250 while the stock opened Wednesday’s U.S. session about $13 below the median $223 target. This placement should support plenty of upside after a breakout.

The stock topped out at 214 in February after a multiyear uptrend and sold off more than 40% during the pandemic decline. A two-legged recovery wave reached the prior high in September, giving way to a secondary downdraft that found support at the 200-day moving average. Price action bounced back to the prior peak in November, ahead of narrow sideways action that has now completed weekly- and daily-scale cup and handle breakout patterns.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication.

Silver Price Daily Forecast – Silver Pulls Back After Yesterday’s Rally

Silver Video 02.12.20.

Silver Tests The Support At The 20 EMA

Silver failed to settle above the 50 EMA at $24.10 and declined towards the 20 EMA at $23.80 while the U.S. dollar was mostly flat against a broad basket of currencies.

The U.S. Dollar Index received strong support near 91.15 and tested the nearest resistance level at 91.50. However, the U.S. Dollar Index failed to gain sufficient upside momentum and declined towards 91.30.

If the U.S. Dollar Index manages to settle below the support at 91.15, it will gain downside momentum and move towards the next support at 91 which will be bullish for silver.

Gold is currently trying to settle above the nearest resistance level at $1815. If this attempt is successful, gold will move towards the next resistance at the 20 EMA at $1840 which will be bullish for silver and other precious metals.

Gold/silver ratio made an attempt to settle below the support at 75.50 but did not manage to gain sufficient downside momentum and returned back to 76.50. If gold/silver ratio declines below the support at 75.50, silver will get a boost.

Interestingly, the restart of U.S. stimulus negotiations failed to provide much support to silver and gold price today. At this point, it looks like precious metals traders are skeptical about near-term chances for a deal between Republicans and Democrats.

Technical Analysis

silver december 2 2020

Silver lost upside momentum after yesterday’s rally and is currently testing the support at the 20 EMA at $23.80. If silver manages to settle below this level, it will head towards the next support level at $23.30.

In case silver settles below the support at $23.30, it will gain downside momentum and head towards the next support level at $22.90.

On the upside, silver needs to get above the resistance at the 50 EMA at $24.10 to have a chance to develop additional upside momentum. The 50 EMA level continues to serve as a major obstacle on the way up, and silver will likely need more bullish catalysts to settle above this level.

If silver gets above the 50 EMA, it will head towards the next resistance level near $24.60. A move above $24.60 will open the way to the test of the resistance at $25.00.

For a look at all of today’s economic events, check out our economic calendar.

USD/JPY Price Forecast – US Dollar Tests 50 Day EMA Again

The US dollar has shot higher during the trading session on Wednesday but has given back the gains as we approached the 50 day EMA. Ultimately, the 50 day EMA has been an area that continues to show a lot of resistance, extending all the way to the 200 day EMA. Furthermore, there is also a downtrend line above that could be an issue as well so pay close attention to both of those areas for potential selling opportunities. The shape of the candlestick is somewhat bullish, and it is worth noting that the last couple of lows have gotten higher, but we are still very much in a longer term downtrend.

USD/JPY Video 03.12.20

All things being equal, I think that we are rallying due to the fact that the market is starting to see more of a “risk on” type of move. If that is going to be the case, then we probably could return to the previous “risk appetite sentiment indicator” that this pair tends to be. However, the Federal Reserve is likely to continue the loosening of monetary policy and possibly even be joined by Congress with stimulus, and therefore it should drive down the value of the US dollar overall.

Granted, this is a very messy area that we are looking at the time, so it might be best to simply wait for the market to make its longer-term decision before putting a lot of money to work. As things stand right now though, if I were forced to trade this pair it would be to the short side every time it rallies and show signs of exhaustion.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Price Forecast – British Pound Pulls Back Over Brexit Worries

The British pound has fallen rather hard during the trading session on Wednesday as we continue to move on the latest rumors and statements coming out of the Brexit situation, which seems to be dragging on. At this point, it is probably worth noting that every time this market pulls back people are willing to jump in and take advantage of value. I do think that this is something worth paying attention to, due to the fact that British pound is historically cheap, and of course the quote currency in this pair is the US dollar. The US dollar of course has been hammered over the last couple of days.

GBP/USD Video 03.12.20

All things being equal, I believe that the 1.3250 level should be supportive, just as the 50 day EMA underneath is. Ultimately, the market is likely to continue to see if it has the momentum to reach above the 1.34 handle and go looking towards the 1.35 level. If we get some type of Brexit news that is positive, that will send this market to fresh highs again, and perhaps even send it much higher as we are historically cheap. That being said, I think we continue to buy short-term dips but be aware the fact that this is a pair that is going to be very rocky to say the least. The size of the candle is something to pay attention to but at the end of the day what I think is the most important thing to pay attention to is the fact that the British pound simply will not die.

For a look at all of today’s economic events, check out our economic calendar.

GBP/JPY Price Forecast – British Pound Pulls Back From Major Level

The British pound has tried to break above the ¥140 level, but this is an area that has been trouble more than once. Ultimately, this is a market that is trying to push higher, and quite frankly I think it is only a matter of time before there is more movement to the upside. That being said, this is a market that is also being thrown around by Brexit and all of the noise involving that situation. Ultimately, Brexit negotiations continue to drag on and cause major headaches for traders overall but what is worth noting is that every time this market breaks down rather significantly, there seems to be plenty of traders out there willing to jump in, perhaps based upon the fact that sooner or later some type of an agreement will be met.

GBP/JPY Video 03.12.20

To the downside I see the 50 day EMA offering quite a bit of support, as it has been followed recently. You can also make an argument for a bit of an ascending triangle right now, which of course will attract the attention of some traders. Given enough time, I fully anticipate that this is a market that will break out because quite frankly it has done everything but breakout at this point. Ultimately, the market will continue to find reasons to go higher, because quite frankly that is what it has been doing for ages now. With this in mind I look to buy dips, but I also recognize it is probably going to be difficult for the final move to happen without some type of negotiated settlement between the EU and the UK.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Price Forecast – Euro Stalling

The Euro rallied rather significantly during the trading session on Tuesday, and therefore the Wednesday session was a bit quiet as traders trying to digest the gains. After breaking a major level like the 1.20 level, it does make sense that traders would need to take a bit of a breather after the most recent surge. After all, breaking that level was something that the market had been trying to do for several months, and now a lot of traders around the world will have to reassess their position and thinking when it comes to the Euro.

EUR/USD Video 03.12.20

There was a lot of concern out there when it came to the ECB due to the fact that the last time the currency broke above the 1.20 level, it was talked back down by the central bank. However, the trade weighted Euro is not making massive highs, so it is thought that perhaps the central bank is not as concerned about this market as they once were. Certainly, after the bullish candlestick that we had seen on Tuesday it makes quite a bit of sense that we would take a breather, but obviously you should not be shorting this market. I think that a pullback towards the 1.20 level will almost certainly be bought into, mainly due to the fact that a lot of traders will either try to cover shorts, or perhaps trying to enter the market as they have missed the breakout.

At this point, the Euro is almost certainly going to go looking towards 1.23 level all things being equal based upon the longer-term charts. I have no interest in shorting.

For a look at all of today’s economic events, check out our economic calendar.

AUD/USD Price Forecast – Australian Dollar Continues to Grind

The Australian dollar has gone back and forth during the trading session on Wednesday, as we continue to see a lot of noise in general. That being said, we are most certainly trying to break out but do not have that final push quite taken care of. At this point in time I do anticipate that traders will probably continue to buy dips, extending down to at least the 50 day EMA which sits just below the vital 0.7250 level. This is an area that will more than likely continue to show its importance after we had seen it offer both support and resistance as of late.

AUD/USD Video 03.12.20

The Aussie dollar course is going to need the continued global growth story and reflation trade to work out, but the one thing that is helping right now is the fact that the US dollar is on its back foot. With that being said, I do believe that it is only a matter of time before the Australian dollar does break out, but it is probably going to take some type of headline or event to make that happen. In the meantime, I think we are essentially “killing time” in trying to digest gains.

To the upside, if we break above the 0.74 level is almost assured that we will go looking towards the 0.75 handle next, which of course is a large, round, psychologically significant figure. There would be a lot of interest in the market at that point, so clearing the 0.75 level could kick off the next leg higher if and when it actually happens.

For a look at all of today’s economic events, check out our economic calendar.

Correction on Gold and Oil Accelerates

Gold accelerates with a bullish reversal. One horizontal and one dynamic resistance are broken, time to test the 1850 USD/oz.

Brent and WTI go lower but still inside the flag.

Nasdaq continues the upswing.

DAX bounces from the lower line of the channel up.

SP500 bounces from the horizontal support.

Dollar Index collapses.

EURUSD aims significantly higher.

EURJPY surges after the Inverse Head and Shoulders pattern.

USDCAD goes deeper after breaking crucial long-term horizontal support.

For a look at all of today’s economic events, check out our economic calendar.

AUD/USD Daily Forecast – Another Test Of Resistance At 0.7380

AUD/USD Video 02.12.20.

U.S. Dollar Remains Under Pressure Against Australian Dollar

AUD/USD is testing the resistance at 0.7380 while the U.S. dollar remains under serious pressure against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below the nearest support which has emerged at 91.15 but failed to develop sufficient downside momentum. If the U.S. Dollar Index manages to settle below this support level, it will get to the test of the next support at 91 which will be bullish for AUD/USD.

Australia reported that third-quarter GDP Growth Rate was 3.3% compared to analyst consensus of 2.6%. GDP grew at a faster pace than expected due to Australia’s success in containing the virus. In addition, Australia’s main trading partner, China, has fully recovered from the blow dealt by the pandemic.

Today, foreign exchange market traders will have a chance to evaluate U.S. ADP Employment Change report for November which is projected to show that private businesses hired 400,000 workers. A softer-than-expected report may increase pressure on U.S. lawmakers which have recently restarted stimulus negotiations.

Technical Analysis

aud usd december 2 2020

AUD/USD continues its attempts to settle above the resistance level at 0.7380. If AUD/USD manages to settle above this level, it will get to the test of the next resistance at 0.7400. A move above the resistance at 0.7400 will open the way to the test of the resistance at 0.7415.

On the support side, the nearest support level for AUD/USD is located at 0.7360. If AUD/USD declines below this level, it will head towards the next support at 0.7340. This support level has been tested in previous trading sessions and proved its strength.

In case AUD/USD declines below the support at 0.7340, it will gain downside momentum and quickly get to the test of the next support level near the 20 EMA at 0.7325.

From a big picture point of view, AUD/USD is consolidating just below the major resistance area at 0.7400 – 0.7415. If AUD/USD manages to stay above the support at 0.7360, it will have a good chance to gain upside momentum and continue the upside trend that was stopped in early September.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – Resistance At 1.2090 In Sight

EUR/USD Video 02.12.20.

Euro Developed Strong Upside Momentum

EUR/USD managed to get above the psychologically important resistance level at 1.2000 and gained strong upside momentum while the U.S. dollar continued to lose ground against a broad basket of currencies.

The American currency remains under significant pressure on the foreign exchange market while traders evaluate the latest news about U.S. stimulus negotiations.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin talked about a potential stimulus package for the first time since the presidential election.

Additional stimulus will put more pressure on the U.S. dollar. Currently, the U.S. Dollar Index is trying to settle below the nearest support level which has emerged at 91.15. If this attempt is successful, the U.S. Dollar Index will move towards the 91 level which will be bullish for EUR/USD.

Yesterday, EU reported that Euro Area Manufacturing PMI decreased from 54.8 in October to 53.8 in November compared to analyst consensus of 53.6. Euro Area Inflation Rate declined by 0.3% year-over-year compared to analyst forecast which called for a decline of 0.2%. Core Inflation Rate increased by 0.2% year-over-year, in line with analyst consensus. Prices remain weak in the Euro Area as the pandemic continues to put serious pressure on the EU economy.

Today, EUR/USD traders will focus on the latest unemployment data from the EU. Analysts expect that Euro Area Unemployment Rate increased from 8.3% in September to 8.4% in October.

Technical Analysis

eur usd december 2 2020

EUR/USD has finally managed to get above the resistance at 1.2000 and immediately developed strong upside momentum. EUR/USD has not visited this area since 2018, and it remains to be seen whether previous levels will be in play in today’s trading.

The nearest resistance level for EUR/USD is located at 1.2090. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.2155.

On the support side, the previous resistance at 1.2000 will serve as the first support level for EUR/USD. If EUR/USD declines below this level, it will head towards the next support at 1.1965. A move below 1.1965 will open the way to the test of the support at 1.1910.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – Attempt To Settle Above 1.3400

GBP/USD Video 02.12.20.

British Pound Continues To Move Higher

GBP/USD is currently trying to settle above the resistance at 1.3400 as the U.S. dollar continues to lose ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle below the support at 91.50 and gained significant downside momentum. The next support level has emerged near 91.15. If the U.S. Dollar Index declines below this level, it will move towards the 91 level which will be bullish for GBP/USD.

Yesterday, UK reported that Manufacturing PMI increased from 53.7 in October to 55.6 in November compared to analyst consensus of 55.2. Meanwhile, Nationwide Housing Prices increased by 6.5% year-over-year in November while analysts expected growth of 5.5%. On a month-over-month basis, Nationwide Housing Prices increased by 0.9% as the housing market remained strong.

In the U.S., Manufacturing PMI increased from 53.4 in October to 56.7 in November, in line with analyst estimates.

Today, foreign exchange market traders will focus on the U.S. ADP Employment Change report which is projected to show that private businesses hired 400,000 workers in November. Traders will also keep an eye on any Brexit news that may emerge. Negotiations between EU and UK continue, and there is little time left to reach a compromise deal.

Technical Analysis

gbp usd december 2 2020

GBP/USD gained strong upside momentum and is currently trying to settle above the major resistance level at 1.3400. GBP/USD spent many trading sessions in a range between 1.3300 and 1.3400 so RSI remains in the moderate territory. Thus, there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

The next resistance level for GBP/USD is located at September highs at 1.3485. If GBP/USD manages to settle above this level, it will head towards the next resistance at 1.3515.

On the support side, GBP/USD needs to get back below 1.3400 to have a chance to develop downside momentum. A move below 1.3400 will push GBP/USD towards the next support level at 1.3325. If GBP/USD declines below this level, it will head towards the support at 1.3300.

For a look at all of today’s economic events, check out our economic calendar.

The Crypto Daily – Movers and Shakers – December 2nd, 2020

Bitcoin, BTC to USD, fell by 4.48% on Tuesday. Partially reversing an 8.25% rally from Monday, Bitcoin ended the day at $18,814.0.

It was a bullish start to the day. Bitcoin rallied to a late morning intraday high and a new swing hi $19,956 before hitting reverse.

Falling short of the first major resistance level at $20,295, Bitcoin slid to an early afternoon intraday low $18,279.0.

The selloff saw Bitcoin fall through the first major support level at $18,647 before finding support.

Bitcoin briefly bounced back to $19,500 levels before falling back through to end the day at sub-$19,000 levels.

The first major support level limited the downside late in the day.

The near-term bullish trend remained intact, in spite of the recent slide back to sub-$17,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $10,095 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bearish day on Tuesday.

Bitcoin Cash SV (-7.09%), Cardano’s ADA (-9.62%), and Ripple’s XRP (-8.05%) led the way down.

Binance Coin (-4.03%), Chainlink (-6.32%), and Ethereum (-5.02%), and also saw relatively heavy losses.

Crypto.com Coin (-0.74%), Litecoin (-2.87%), and Polkadot (-0.91%) saw relatively modest losses on the day, however.

In the current week, the crypto total market cap rose from a Monday low $531.50bn to a Monday high $589.74bn. At the time of writing, the total market cap stood at $552.36bn.

Bitcoin’s dominance fell to a Monday low 62.47% before rising to a Tuesday high 63.99%. At the time of writing, Bitcoin’s dominance stood at 63.26%.

This Morning

At the time of writing, Bitcoin was up by 0.20% to $18,852.0. A mixed start to the day saw Bitcoin fall to an early morning low $18,528.0 before rising to a high $18,885.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Binance Coin (-0.10%) and Crypto.com Coin (-1.50%) saw red to buck the trend early on.

It was a bullish start to the day for the rest of the pack, however, which recovered from early losses.

At the time of writing, Litecoin was up by 1.41% to lead the way.

BTCUSD 021220 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the pivot level at $19,016 to bring the first major resistance level at $19,754 into play.

Support from the broader market would be needed for Bitcoin to break through to $19,500 levels.

Barring an extended crypto rally, the first major resistance level and resistance at $20,000 would likely cap any upside.

In the event of a crypto breakout, Bitcoin could test resistance at $20,500 before any pullback. The second major resistance level sits at $20,693.

Failure to move through the $19,016 pivot would bring the first major support level at $18,077 into play.

Barring another extended crypto sell-off, Bitcoin should continue to steer clear of sub-$18,000 levels. The second major support level sits at $17,339.