Personal opinions today:

 

The federal reserve cut its benchmark interest rate by 25 basis points to 1.75%. At the Press conference, Fed President Powell, as he has done in the past, again suggested that Fed rate cuts were not necessary in future but that Fed would be determined by economic risks and prospects, without indicating a cycle of rate cuts. U.S. private employment in ADP fell in October from a month earlier, but was just above 120,000, or 125,000 and U.S. Q3 GDP fell to 1.9%, also below its previous level, but the federal reserve cut rates to 1.75% and Fed rates below inflation helped stimulate the economy and lift Dow futures, which closed near a six-month high. Gold, silver and the yen rallied as the federal reserve cut interest rates and started to expand its balance sheet, buying short-term assets, equally the easing policy. In addition, U.S. private payrolls in October was one reason why gold, silver and the yen were also lifted by a lack of optimism about U.S. non-farm payrolls report tomorrow. Expect that, Dow futures have yet to fall. Crude oil prices have fallen, suggesting dow futures may follow.

 

In Asian trading today, the Bank of Japan announced the interest rate decision and the governor haruhiko kuroda held a press conference, which is worth watching whether the monetary policy will change. Without any change, the dollar follows the dow and nikkei futures. Gold and silver prices hit highs as the forecast for U.S. non-farm payroll was weak, with the USDJPY could fall.

 

[Important financial data and events]

Note: * is the degree of importance

 

11:00 The Bank of Japan interest rate decision and outlook **

14:30 Bank of Japan Press conference ***

15:45 French CPI *

18:00 Eurozone CPI ***

18:00 Eurozone GDP**

20:30 U.S. jobless claims last week ***

20:30 U.S.  core PCE price index for September **

20:30 Canada GDP in August *

21:45 U.S.  PMI for October in Chicago **

The U.S. house of representatives is to hold a full house vote to determine impeachment proceedings

 

Today's suggestion:

 

Euro/dollar

1.1175/1.1185 resistance

1.1145/1.1135 support

The dollar fell after the federal reserve cut interest rates and a weak U.S. jobs report in October. The dispute over Brexit deal has been put aside for now to bullish the euro. Technically, British pound also led the euro. The Eurozone is expected to grow as well, based on data already released by Germany. If the results are in line with growth expectations and wait for weak U.S. nonfarm payroll tomorrow night, the euro is expected to gain against the dollar. Now watch 1.1175 and 1.1185 resistance, support at 1.1145 and 1.1135.

 

British pound to US dollar

1.2940/1.2950 resistance

1.2880/1.2870 support

The British parliament's decision to the vote and hold a general election in December temporarily eased the slide, but markets expected a negative outcome for pound. Since the dollar fell and pound indirectly rose after last night's weak U.S. October ADP jobs data, market watch tomorrow non-farm payroll data was also weak, and pound continued to rise against the dollar.

 

Australian dollar to US dollar

0.6940/0.6950 resistance

0.6885/0.6875 support

The federal reserve cut interest rates and ADP employment data for October were weak. The timetable for a China and US trade deal is expected to be advanced, with the Australian dollar gaining against the U.S. dollar. Otherwise, problems with the final revision of the China and US trade agreement are expected to lead to gains in the Australian and New Zealand dollars ahead of the weak US non-farm payroll data tomorrow night.

 

Dollar/yen

108.85/108.95 resistance

108.35/108.25 support

Today, the Bank of Japan interest rate, the governor would have a speech in this afternoon. It could believe that the Bank of Japan will continue to maintain negative interest rates, or possibly increase the scale of monetary policy easing, bearish the Japanese yen. Without a change in monetary policy and economic outlook, the dollar will follow Dow futures against the yen. Dow futures have a good chance of falling on the weak U.S. non-farm payroll data expectation, as do the USDJPY follow by Dow and Nikkei future. Take note of temporary 108.35 and 108.25 support.

 

U.S. dollar to Canadian dollar

1.3180/1.3190 resistance

1.3125/1.3115 support

Last night, the Bank of Canada released its interest rate decision and monetary policy report. After the press conference, BoC did not express an optimistic economic outlook. As expected, the Canadian dollar fell as crude oil prices fell. Technically, watch USDCAD 1.3125 or 1.3115 support, resistance 1.3190. If crude oil prices rebound, the U.S. dollar could test support against the Canadian dollar.

 

United States crude oil futures

55.65/56.10 resistance

53.90/53.40 support

U.S. Q3 GDP was weak, jobs available slowed, prospects for oil demand uncertain and crude prices weak. But with Brexit delayed, a deal between China and the US could be signed sooner. It could believe crude oil could rebound if it falls to $53 or above. It is now estimated that crude oil prices will continue to adjust to a target range of $53 ahead of the release of US non-farm payroll tomorrow night.

 

Gold

1505/1507 resistance

1492/1490 support

U.S. GDP and employment data was weak, the Fed still has a chance to cut interest rates in the future and, more importantly, the US ADP jobs data for October showed weakness. These adverse factors, bullish the price of gold. The federal reserve has cut interest rates following a drop in U.S. ADP employment in October and a drop in Q3 GDP. Recently, it is expected that money will flow into the gold market, allowing the price of gold to rise again. Gold is now expected to have an opportunity to test $1,505 or $1,507 resistance ahead of the U.S. non-farm payrolls data, and could also test $1,510. But, Brexit process, the China and US trade deal and so on, may cause gold prices to adjust. Tentative estimates suggest that $1,492 and $1,490 are likely to be significant short-term support.

 

U.S. Dow Jones industrial average futures US30

27220/27285 resistance

26990/26900 support

The Fed rate cut and expanded its balance sheet, it is good for US economy but in future. The market still waiting a signal in the U.S. economic and employment data. However, US non-farm payroll data is not optimistic, must watch the Dow futures correction from higher level.

 

BTCUSD:

9380/ 9950 resistance

8950 / 8750 support

Since US economy slowdown, FOMC Fed fund rate cut. The FOMC mentions the Fed rate may not cut further, bearish for crypto currencies, such as  Bitcoin. The bitcoin price fell after the FOMC meeting. Technically the bitcoin price could test the  support at US7885 agains. Since the US non-farm payroll forecast and gold price rose, catch up the upward in Bitcoin.

 

Enjoy trading! The content is for reference only. Please do ensure that you understand the risk.