Corn stays consolidated

The March contract of corn has been consolidating between the 334.74 level and the 361.38 level. The 200 day exponential moving average has been acting as a resistance, even though in one occasion the price of corn broke above that level. There could be trading opportunities inside the range, but it is risky due to the fact that the price may break in any direction. The stochastics are coming close to the over-sold zone; therefore, the price may try to go and visit the 334.74. To the downside, the 320.00 level may act as its next support. To the upside, the 361.38 level may act as its next resistance if the price visits that level again.

GBP/JPY: Breaks 200 day EMA

The Pound versus the Yen has kept a very good bullish trend during the last few weeks as shown on the daily chart and breaks above the 200 day exponential moving average or 200 day EMA, which is currently around the 141.23 level. After breaking above the 200 day EMA, the pair makes a high around the 145.22 level where it stalls and tries to pull back. In case of a pullback, the pair may touch the 200 day EMA again and complete a breakout and pullback pattern. But if it breaks below the 200 day EMA, then the 137.00 level could act as support. Below the 137.00 level, its next support could be the 131.00 level. The stochastics are consolidating at the over-bought zone, because while the price may continue rallying, the indicator is not able to break above the 100% level, therefore it just goes sideways.

Death cross on gold

A few days ago we identified on the daily chart of gold that there could be a death cross in the coming days. A death cross is when the 55 day exponential moving average crosses below the 200 day exponential moving average with bearish implications in the longer term. Today we can see that the death cross has been confirmed, even though the price of gold has retraced to the upside. From the 1200.00 level, gold may bounce back down and continue with its bearish trend. If gold breaks below the 1170.90 level, then it may try to go and visit the 1100.00 level. On the other hand, gold may try to pull back a little bit higher and it if does, then it may try to visit the 1241.45 zone, which could act as resistance.

Good pullback on oil

WTI oil has made a good pullback to the 46.00 level as shown on the daily chart. Just below the 46.00 level we can see the 200 day exponential moving average, blue line, which may contribute along with the 46.00 level to prevent the price of oil to drop below it. Therefore, we could see a bounce to the upside. If the price bounces to the upside, then it may find resistance again at the 48.00 zone as it did recently. If the price continues rallying above the 48.00 level, then its next resistances could be the 50.00 level or the high at the 51.60. On the other hand, the price may also break below the 46.00 level and maybe try to visit the 44.00 or the 42.00 levels.

ActivTrades Event Follow Up: Tools & Trading Setups

There is always something new to learn from the markets and the proper training and education is needed to achieve success in trading. ActivTrades has always been providing the right tools to its clients so that they can be the most successful in the markets. On November 24^th, Paul Wallace will be following up on different trading tools and trading setups. On December 1^st, Malte Kaub will be conducting an excellent Webinar on Forex and Indices. To register for the upcoming events, just visit the following link:

https://www.activtrades.co.uk/webinars

GBP/JPY: Visits the 200 day EMA

The 200 day exponential moving average or EMA usually acts as a good support or resistance zone. On the daily chart of the GBP/JPY we can see that the pair has reached its 200 day EMA, blue line, around the 141.19 level. The rally has been really steep; therefore, from the current level the pair may bounce to the downside and probably correct to the 139.00 level. A longer correction could take the pair to the 135.00 level. The bullish trend is still in place and that is why we could see a breakout of the 200 day EMA, which could take the pair to the 150.00 zone.

GBP/USD: Boxed between the 1.2300 & 1.2600

The Pound versus the Dollar consolidates between the 1.2300 level and the 1.2600 level, forming what it appears to be a symmetrical triangle. From this area the price may head in any direction, but we must keep in mind that in the longer term the bearish trend is still in place. A breakdown below the 1.2300 level could take the pair to the 1.2200 or the 1.2000 levels. To the upside, above the 1.2600 level, its next resistances could be the 1.2800 level or the 1.300 level.

EUR/USD: Nears the 1.0500 level

The Euro versus the Dollar has been dropping steadily during the last few weeks and reaches the 1.0521 level as shown on the daily chart. The bearish momentum has been strong, but at the current levels, the pair may try to pull back or retrace to the upside. The 1.0500 zone may act as support, but if the pair continues dropping, probably after a small retracement, then it may visit the 1.0400 level. To the upside, the next resistance zones could be the 1.0600 level, followed by the 1.0700 level.

The weakness in the Euro

The Euro versus the Dollar continues dropping and remains weak, but the over-extended current nature of the pair may cause a bullish pullback or correction from current levels. On the weekly chart of the EUR/USD we can see that the pair has been dropping for the last two weeks and breaks below the 1.0600 level. The next support in sight is the 1.0521 level, but we can round it off to the 1.0500 level. If for some reason the pair breaks below the 1.0500 level, then it may try to go and reach the 1.0000 level, which is really parity for the EUR/USD. If the upcoming US fundamentals keep coming out better than expected, then the EUR/USD may continue falling.

GBP/JPY: Goes back up

The Pound versus the Yen is a pair that it is usually very volatile with big swings. During that last few days the pair has kept a good bullish trend, but consolidates around the 135.00 level. Today we can see that the bullish momentum comes in again and the pair rallies. If it continues going higher, then the 139.00 level may act as its next resistance. Below the 135.00 level, the next supports in sight are the 132.00 level or the 55 day EMA, purple line. The lows on the chart at the 126.69 level and the 124.85 level may also act as support.

EUR/GBP: Possible bearish continuation

The Euro versus the Pound has had a good bearish trend and the momentum seems to accelerate once the pair broke below the 0.8600 level. The Euro weakens versus most of its major counterparts, therefore, it is possible for the pair to continue falling towards the 200 day EMA, blue line, which is currently around the 0.8389 zone. Attention to a visit to the 200 day EMA, because the pair may try to bounce from there to the upside, providing a possible long entry. But if the pair breaks below the 200 day EMA, then the breakdown may also provide an entry to the downside. To the upside, the 55 day EMA, purple line, may act as resistance. Above the 55 day EMA, the next resistance could be the 0.9000 level.

USD/JPY: Possible resistance on the 109.00 level

The USD/JPY has been rallying steadily and it reaches the 109.00 level where it stalls at the moment as shown on the daily chart. The 109.00 level may act as resistance and the price may try to bounce to the downside from there, in such case, a return to the 106.16 level is possible. The bullish trend is still in place and if the price continues going higher, then the price may reach the 111.00 level or even the 112.00 level. For now we are waiting to see if the risk appetite continues and the Dollar continues rallying versus the Yen.

Consolidation on gold may be a resting point

The drop on gold has stopped momentarily around the 1219.11 zone as shown on the daily chart of the precious metal and for the last few days it consolidates there. The consolidation may act as a resting zone, from where the price may continue falling. A visit to the 1200.00 level may happen in the coming days. The 1200.00 level may act again as support. To the upside there are a few important levels that may act as resistance, but in reality, the price of gold may stay consolidated in the longer term between the 1200.00 level and the 1300.00 level. The most important supports are the 1241.45 level, the 200 day EMA and obviously, the 1300.00 level.

Will gold continue falling?

Since gold is a safe-haven instrument, during the last presidential elections in the US, the commodity had very high volatility. But the risk aversion left the markets and gold dropped, pressured by the rally in the Dollar. Once the price of gold broke below its 200 day EMA, blue line, around the 1270.66, the bearish momentum accelerates and gold visits the low at the 1241.45 level. The 1241.45 level had acted as a support in the past, but the drop in gold was so strong that it also broke that level to reach the 1219.11 level. The bearish trend may continue and gold may visit the 1200.00 level. To the upside the most important resistances could be the 200 EMA, the 1300.00 level and the high at the 1337.04 level.

Webinars: Working with Stop Losses and Take Profits

Great events, great Webinars during this month of November by ActivTrades. Paul Wallace will be conducting an interesting event on Thursday, November 10 on how to use the stop loss and take profit orders properly. To register for this and the upcoming Webinars, just follow the link below:

https://www.activtrades.co.uk/webinars

On November 17^th, Paul Wallace will also be with us to explain the different types of traders that there are. Some are pullback traders, but some are breakout traders. Another great topic to take advantage of. Don’t miss this great opportunity to expand your trading knowledge.

EUR/USD: Trump’s volatility

The EUR/USD has shown high volatility during the US presidential elections. On the daily chart of the pair we can see a big spike that reaches the 1.1300 level. That high was created when it was getting clear that Donald Trump was going to win the elections. But the market seems to have gotten ahead of itself and the price dropped back down to the 1.0900 level. By the way, the 1.0900 level has been acting as a support, but a breakdown of that zone could take the pair to the 1.0800. The range of the EUR/USD was 400 pips on yesterday’s candle, causing the 1.1300 level to be the most important resistance so far. If the volatility dries up, then the price may fluctuate between the 1.0900 level and the 1.1100 level for a while.

Oil continues falling

On the daily chart of WTI oil we can see a huge drop from the 51.60 area to the 44.00 zone. At the 44.00 zone, oil tried to jump to the upside, but it couldn’t keep the bullish momentum, coming close to the 200 day exponential moving average. Another visit to the 44.00 level may cause the price of oil to stall its fall there, but the bearish trend is still in place and it may break it to the downside. A breakdown of the 44.00 level may take oil to the 42.00 level, but we can see on the chart that the most important support so far has been the 40.00 level.

USD/CAD: Bounces from the 1.3300 level

The USD/CAD rallied last week towards the 1.3450 zone, but it pulls back from that area to the 1.3300 zone as shown on the daily chart. From this level the pair may try to bounce to the upside, since the 1.3300 could act as a support. A bullish bounce of the USD/CAD from the 1.3300 level, may take the pair to the 1.3400 zone or the 1.3500. But if the price breaks below the 1.3300 level, then it may drop to the 1.3200 where it may find a temporary support, because below that level we can see the 200 day exponential moving average, blue line, around the 1.3138 level and which could act as a better support. Below the 200 day EMA, the next important support area is the 1.3000 zone.