{"id":37321,"date":"2019-11-03T01:06:23","date_gmt":"2019-11-02T14:06:23","guid":{"rendered":"https:\/\/www.icmarkets.com\/blog\/?p=37321"},"modified":"2025-11-17T16:53:23","modified_gmt":"2025-11-17T05:53:23","slug":"monday-4th-november-weekly-technical-outlook-and-review","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/monday-4th-november-weekly-technical-outlook-and-review\/","title":{"rendered":"Monday 4th November: Weekly technical outlook and review."},"content":{"rendered":"\n<p><a>Key risk\nevents today:<\/a><\/p>\n\n\n\n<p>Japanese\nbanks closed in observance of Culture Day; Australia Retail Sales m\/m; ECB\nPresident Lagarde Speaks.<\/p>\n\n\n\n<p><strong>EUR\/USD:<\/strong><\/p>\n\n\n\n<p>Weekly gain\/loss: +0.77%<\/p>\n\n\n\n<p>Weekly close: 1.1164<\/p>\n\n\n\n<p>Weekly perspective:<\/p>\n\n\n\n<p>Despite recently anchoring at the underside of a long-standing resistance area drawn from 1.1119-1.1295, buyers <em>appear<\/em> to be strengthening their grip. Increased bidding this week has the upper boundary of a descending channel (1.1169\/1.1569) to target, which happens to intersect with the top edge of the aforementioned resistance zone. Buying beyond here, however, exposes the 2019 yearly opening level at 1.1445.<\/p>\n\n\n\n<p>Concerning trend direction, the primary downtrend has been in motion since topping in early 2018 at 1.2555.<\/p>\n\n\n\n<p>Daily perspective:<\/p>\n\n\n\n<p>Chart studies on the daily timeframe reveal EUR\/USD movement retested support at 1.1110 last week and clocked highs at 1.1175. As a result of this, the ducks appear to be lining up for a test of a nearby Quasimodo resistance level at 1.1187 this week. Not only is this level reasonably strong in its own right, additional resistance is visible in the form of a 200-day SMA (orange \u2013 1.1196) and a <em>Fibonacci cluster<\/em> between 1.1121\/1.1203. Therefore, 1.1121\/1.1187 is certainly a zone to watch on this scale going forward. <\/p>\n\n\n\n<p>H4 perspective:<\/p>\n\n\n\n<p><a>Total <\/a><a>non-farm payroll employment rose by 128,000 in October, the unemployment rate was little changed at 3.6% and average hourly earnings ticked lower than expected at 0.2%, the US Bureau of Labour Statistics reported Friday. <\/a>Additionally, the October PMI registered 48.3%, an increase of 0.5 percentage points from the September reading of 47.8%, though lower than market consensus at 49.0%, according to the Institute for Supply Management.<\/p>\n\n\n\n<p>The employment reading prompted a run higher, travelling from a low of 97.26 on the US dollar index to a high of 97.43. The move was relatively short lived, aided by less-than-stellar US manufacturing. In terms of EUR\/USD action, the pair wrapped up Friday a shade higher, but remains toying with resistance coming in at 1.1163. Continued bidding may lead to an approach towards the 1.12 handle, which, according to daily structure, aligns with 1.1121\/1.1187.<\/p>\n\n\n\n<p>Areas of consideration:<\/p>\n\n\n\n<p>Though H4 resistance at 1.1163 remains in motion, most traders likely have their crosshairs fixed on the 1.12 handle for shorts this week. Knowing this barrier merges with 1.1121\/1.1187 on the daily scale as well as weekly price trading within a resistance area at 1.1119-1.1295, 1.12 represents a high-probability sell zone. <\/p>\n\n\n\n<p>Conservative traders, however, may opt to wait and see if a H4 bearish candlestick formation emerges before pulling the trigger, in an attempt to avoid any whipsaw through 1.12, which is common viewing around psychological numbers (entry\/risk can then be set according to this structure). <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"500\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-EUR-1024x500.png\" alt=\"\" class=\"wp-image-37326\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-EUR-1024x500.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-EUR-300x147.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-EUR-768x375.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-EUR.png 1508w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>GBP\/USD:<\/strong><\/p>\n\n\n\n<p>Weekly\ngain\/loss: +0.87%<\/p>\n\n\n\n<p>Weekly\nclose: 1.2933<\/p>\n\n\n\n<p>Weekly\nperspective:<\/p>\n\n\n\n<p>Following\nthe break of the 2019 yearly opening level at 1.2739, price action on the\nweekly timeframe has entered a somewhat indecisive phase over the past two\nweeks. A retest at 1.2739 or additional upside towards supply at 1.3472-1.3204\/long-term\ntrend line resistance etched from the high 1.5930 is certainly a possibility on\nthis scale going forward.<\/p>\n\n\n\n<p>The\nimmediate trend faces a downward trajectory from 1.4376, with a break of the\n1.1904 low (labelled potential support) confirming the larger downtrend from\n1.7191.<\/p>\n\n\n\n<p>Daily\nperspective:<\/p>\n\n\n\n<p>The\nsmall, yet clearly respected, area of resistance at 1.3019-1.2975, which aligns\nwith the 161.8% Fibonacci ext. point at 1.2978, remains at the forefront of\nthis timeframe. Failure to engulf channel resistance-turned support (extended\nfrom the high 1.2582), however, has placed the current resistance zone under\npressure, with Quasimodo resistance plotted at 1.3102 seen above. Below the\nsaid channel support, support resides close by at 1.2769, closely shadowed by\nthe 200-day SMA (orange \u2013 1.2708).<\/p>\n\n\n\n<p>H4\nperspective:<\/p>\n\n\n\n<p>The\nheadline seasonally adjusted UK manufacturing purchasing managers\u2019 index (PMI)\nrose to 49.6 in October, up for the second successive month but remaining below\nthe neutral 50.0 mark separating expansion from contraction, according to\nMarkit. Friday also staged mixed US employment figures, with headline non-farm\npayroll employment rising by 128,000 in October.<\/p>\n\n\n\n<p>In\nterms of the technical position on the H4 timeframe, the pair trades firm north\nof the 1.29 handle, poised to approach the key figure 1.30. Note 1.30 held\nprice lower on two occasions during October, strengthened by the daily\nresistance area mentioned above at 1.3019-1.2975 and a 161.8% Fibonacci ext.\nratio at 1.2978. <\/p>\n\n\n\n<p>Areas\nof consideration:<\/p>\n\n\n\n<p>The\nbreak of 1.29 has potentially set the technical stage for a bullish theme,\ntargeting the underside of the daily resistance area at 1.3019-1.2975, followed\nby 1.30 on the H4. To take advantage of any upside above 1.29, traders, as of\ncurrent price, may be watching for a retest at 1.29 to emerge before committing\nfunds to a position. Should this unfold, waiting for a confirming H4 bullish\ncandlestick to develop may be the better path to explore; this identifies buyer\nintent and provides entry\/risk levels to work with. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"498\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GBP-1024x498.png\" alt=\"\" class=\"wp-image-37327\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GBP-1024x498.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GBP-300x146.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GBP-768x374.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GBP.png 1507w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>AUD\/USD:<\/strong><\/p>\n\n\n\n<p>Weekly\ngain\/loss: +1.35%<\/p>\n\n\n\n<p>Weekly\nclose: 0.6912<\/p>\n\n\n\n<p>Weekly\nperspective:<\/p>\n\n\n\n<p>Since\nengulfing 0.6744 (blue dashed) in early August, AUD\/USD action has been carving\nout a consolidation zone between 0.6894\/0.6677 (light grey). That was the case\nuntil last week when <a>buyers tunnelled through the top\nedge of the said range. Potentially viewed as a sign of bullish strength, the\n2019 yearly opening level at 0.7042 is seen as the next upside objective on\nthis scale. <\/a><\/p>\n\n\n\n<p>With\na primary downtrend in play since early 2018, breaking through 0.7042 is likely\na challenge. <\/p>\n\n\n\n<p>Daily\nperspective:<\/p>\n\n\n\n<p><a>Before pressing for higher ground on\nthe weekly timeframe, daily traders must contend with a swing resistance\nplotted at 0.6910, a trend line resistance (extended from the high 0.7393) and\na 200-day SMA (orange \u2013 0.6954). The 50-day SMA (blue \u2013 0.6798) currently faces\nnorthbound, while the said 200-day SMA still points south.<\/a><\/p>\n\n\n\n<p>It\nmay also interest some traders this week that a violation of the 200-day SMA potentially\nclears the runway for an advance towards Quasimodo resistance at 0.7047,\nclosely followed by another layer of resistance priced in at 0.7062 (set nearby\nthe 2019 yearly opening level on the weekly timeframe at 0.7042).<\/p>\n\n\n\n<p>H4\nperspective:<\/p>\n\n\n\n<p>China\u2019s\nCaixin manufacturing PMI provided fresh impetus to the AUD\/USD in early trade\nFriday, lifting price action beyond the 0.69 handle. Weak US ISM manufacturing\nPMI data weighed on the dollar amid US hours, consequently supporting buyers\nnorth of 0.69 into the close. Aside from last Thursday\u2019s high at 0.6929, the\nnext port of resistance on the H4 scale falls in around 0.6957, which aligns\nalmost to-the-point with the 200-day SMA. <\/p>\n\n\n\n<p>Additional\nlevels worthy of mention are trend line support taken from the low 0.6723,\nsupport at 0.6883 and another layer of support at 0.6809. <\/p>\n\n\n\n<p>Areas\nof consideration:<\/p>\n\n\n\n<p>Until\nthe unit engulfs the 200-day SMA (0.6954), further buying on the weekly\ntimeframe is problematic. <a>With this being the case,\ntraders may find use in the H4 resistance at 0.6957 this week as a possible\nsell zone, knowing it merges with the said 200-day SMA value. <\/a>This could be\ngood for at least a bounce back to 0.69ish. <\/p>\n\n\n\n<p>Failing\na push higher, a H4 close beneath H4 trend line support mentioned above at\n0.6723 is likely to be viewed as a bearish indicator, targeting H4 support\ncoming in at 0.6809. As such, shorts beyond the said trend line support are\nalso a consideration this week. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"501\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-AUD-1024x501.png\" alt=\"\" class=\"wp-image-37322\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-AUD-1024x501.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-AUD-300x147.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-AUD-768x376.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-AUD.png 1505w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>USD\/JPY:<\/strong><\/p>\n\n\n\n<p>Weekly\ngain\/loss: -0.46%<\/p>\n\n\n\n<p>Weekly\nclose: 108.16<\/p>\n\n\n\n<p>Weekly\nperspective:<\/p>\n\n\n\n<p>Moulded\nin the shape of a bearish engulfing candlestick pattern, USD\/JPY activity\nspiralled southbound over the past week and snapped a three-week bullish phase.\nFormed a few points south of the 2019 yearly opening level at 109.68 and a\n127.2% Fibonacci ext. point at 109.56 (taken from the low 104.44), the 106.48\nSeptember 30 low offers possible support in the event of further selling this\nweek. Quasimodo support located at 105.35 is also prominent structure on this\ntimeframe.<\/p>\n\n\n\n<p>Daily\nperspective:<\/p>\n\n\n\n<p>Daily\nprice sold off following Wednesday\u2019s shooting star candlestick pattern\n(considered a bearish signal) out of a daily resistance area between 109.17\/108.99\n(comprised of a resistance level at 109.17, the 200-day SMA [orange\/109.03 \u2013\nseen flattening] and Quasimodo resistance at 108.99). &nbsp;The next downside target on this scale falls\nin close by at the 50-day SMA (blue \u2013 107.68), followed by support at 106.80.<\/p>\n\n\n\n<p>H4\nperspective:<\/p>\n\n\n\n<p>The\nUS economy added 128,000 new jobs in October vs. 90,000 anticipated, spurring a\nwave of buying to highs of 108.25 Friday. Gains, however, were swiftly pared on\nthe back of weaker-than-expected US ISM manufacturing data, though price\nmodestly defended the 108 handle and trend line support (pencilled in from the\nlow 104.44) into the close. <\/p>\n\n\n\n<p>Resistance\nlies nearby at 108.41, with a break higher exposing the 109 handle. Beneath\n108, nonetheless, the pair exhibits scope to press as far south as the 107\nregion. Indicator-based traders may also wish to note the relative strength\nindex (RSI) recently formed a hidden bullish divergence reading out of oversold\nterritory (blue line).<\/p>\n\n\n\n<p>Areas\nof consideration:<\/p>\n\n\n\n<p>Traders\nsearching for confirmation of the recently formed weekly bearish engulfing\ncandle could watch for a break of the H4 trend line support (104.44) this week.\nThis, despite the possibility of the 50-day SMA offering support, could lead to\na test of 107. <\/p>\n\n\n\n<p>A\nbreak of H4 resistance at 108.41, on the other hand, lends a bullish vibe to\nthe proceedings, emphasising a retest of 109 may be in store. In this case,\nlooking for bullish signals above 108.41, preferably a retest of the level by\nway of a H4 bullish candlestick pattern (entry and risk levels can be set\naccording to this structure), could be an idea. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"499\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-JPY-1024x499.png\" alt=\"\" class=\"wp-image-37329\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-JPY-1024x499.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-JPY-300x146.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-JPY-768x374.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-JPY.png 1506w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>USD\/CAD:<\/strong><\/p>\n\n\n\n<p>Weekly\ngain\/loss: +0.64%<\/p>\n\n\n\n<p>Weekly\nclose: 1.3138<\/p>\n\n\n\n<p>Weekly\nperspective:<\/p>\n\n\n\n<p>Snapping\na three-week losing streak and reclaiming all the prior week\u2019s losses, weekly\nflow rebounded from trend line support (extended from the low 1.2061) in\nreasonably strong fashion last week. Additional upside from this point has tops\naround 1.3342 in sight, closely followed by the 2017 yearly opening level at\n1.3434 and trend line resistance taken from the peak at 1.3661.<\/p>\n\n\n\n<p>A\nviolation of the aforementioned trend line support exposes Quasimodo support at\n1.2887.<\/p>\n\n\n\n<p>Daily\nperspective:<\/p>\n\n\n\n<p>Supply\nat 1.3239-1.3199 entered the fold Wednesday and held into the close, with\nFriday producing an impressive downside rotation. Intersecting with this area\nis the 50-day SMA (blue \u2013 1.3220), with the 200-day SMA (orange \u2013 1.3274)\npositioned a few points above. <\/p>\n\n\n\n<p>With\nboth SMAs pointing south, last Tuesday\u2019s low at 1.3042 could be targeted this\nweek, set a few points north of support at 1.3018.<\/p>\n\n\n\n<p>H4\nperspective:<\/p>\n\n\n\n<p>A\nrobust NFP report, followed by optimism on the US\/China trade front, saw crude\noil prices move higher Friday, consequently weighing on USD\/CAD movement from a\nfamiliar resistance area between 1.32\/1.3187 (comprised of a 50.0% retracement\nratio at 1.3194, August\u2019s opening level at 1.3187 and a trend line\nsupport-turned resistance etched from the low 1.3134. Note this area also unites\nwith the underside of daily supply mentioned above at 1.3239-1.3199. <\/p>\n\n\n\n<p>Traders\nwho read Friday\u2019s technical briefing may recall the following piece:<\/p>\n\n\n\n<p><em>In\nlight of the technical confluence supporting 1.32 as resistance on the H4\nscale, this could promote further selling. However, entering at current price\nplaces the trader at a slight disadvantage in regards to risk\/reward. Waiting\nand seeing if price action retests 1.32 a second time may be the alternative,\nentering on the back of the rejection candle\u2019s structure and targeting a move\nto 1.31.<\/em><\/p>\n\n\n\n<p>Areas\nof consideration:<\/p>\n\n\n\n<p>Well\ndone to any readers who managed to short 1.32\/1.3187 on the H4 scale. Reducing\nrisk to breakeven and liquidating a portion of the position is certainly an\noption now. This helps protect against the possibility of buying on the weekly\nscale off trend line support. <\/p>\n\n\n\n<p>Continued\nselling on the H4 timeframe, nevertheless, highlights 1.31 as the next downside\ntarget, which despite weekly price suggesting higher prices, is backed by daily\nprice exhibiting scope to press lower from supply mentioned above at 1.3239-1.3199.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"497\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CAD-1024x497.png\" alt=\"\" class=\"wp-image-37323\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CAD-1024x497.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CAD-300x146.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CAD-768x373.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CAD.png 1510w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>USD\/CHF:<\/strong><\/p>\n\n\n\n<p>Weekly\ngain\/loss: -0.88%<\/p>\n\n\n\n<p>Weekly\nclose: 0.9854<\/p>\n\n\n\n<p>Weekly\nperspective:<\/p>\n\n\n\n<p>Supply\nat 1.0014-0.9892 remains in play, though despite recent selling still resembles\nsomewhat of a fragile tone. The beginning of October witnessed a penetration to\nthe outer edge of the supply area\u2019s limit, possibly tripping a portion of buy\nstops and weakening sellers. An upside move out of the said supply may draw in\nQuasimodo resistance at 1.0124, while downside has the 2018 yearly opening\nlevel at 0.9744 in sight.<\/p>\n\n\n\n<p>According\nto the primary trend, price also reflects a slightly bullish tone; however, do\nremain aware we have been rangebound since the later part of 2015\n(0.9444\/1.0240). <\/p>\n\n\n\n<p>Daily\nperspective:<\/p>\n\n\n\n<p>Supporting\na bearish theme out of the current weekly supply, however, is daily action\ncurrently in process of completing a bearish head and shoulder\u2019s formation out\nof a resistance area at 1.0010-0.9986. The break of the <em>neckline <\/em>taken\nfrom the 0.9843 September 24 low (blue line) needs to be engulfed before this\npattern is tradeable, with an optimal downside target present at Quasimodo\nsupport fixed from 0.9692.<\/p>\n\n\n\n<p>H4\nperspective:<\/p>\n\n\n\n<p>Friday\nwitnessed an upsurge of buying in wake of the US non-farm payrolls release,\nreaching highs just south of September\u2019s opening level at 0.9896\/the 0.99\nhandle. Buyers failed to sustain gains beyond this point, weighed on by\nweaker-than-expected US manufacturing data. <\/p>\n\n\n\n<p>The\ncurrent support area at 0.9852-0.9873 is hanging on by a thread at the moment;\na break would likely clear orders to shake hands with 0.98.<\/p>\n\n\n\n<p>Areas\nof consideration:<\/p>\n\n\n\n<p>Based\non the three timeframes analysed above, a reasonably strong bearish vibe is\npresent right now. Ultimately, traders are likely watching for a daily close\nbelow the head and shoulders neckline (0.9843) before committing funds to a\nshort position. A decisive H4 close below the support area at 0.9852-0.9873\nwill potentially be viewed as an early cue, however. Therefore, aggressive\ntraders may look to begin loading up on shorts at this point, and pyramiding\npositions on a break of the head and shoulder\u2019s neckline. <\/p>\n\n\n\n<p>The\nfirst downside target for shorts falls in at 0.98, though according to weekly\nprice, 0.9744 is a possibility, followed by daily Quasimodo support at 0.9692.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"498\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CHF-1024x498.png\" alt=\"\" class=\"wp-image-37324\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CHF-1024x498.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CHF-300x146.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CHF-768x374.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-CHF.png 1506w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Dow Jones Industrial Average:<\/strong><\/p>\n\n\n\n<p>Weekly\ngain\/loss: +1.34%<\/p>\n\n\n\n<p>Weekly\nclose: 27270<\/p>\n\n\n\n<p>Weekly\nperspective:<\/p>\n\n\n\n<p>US\nstocks ended the week in relatively strong fashion, extending the previous\nweek\u2019s gain by way of a near-full-bodied bullish candle. Resistance at 27335\nremains a focal point on this chart, sited only a few points south of the\nall-time high 27388. Levels of support remain fixed at the 25710 September 30\nlow, support at 25251 and the 2018 yearly opening level at 24660. <\/p>\n\n\n\n<p>Despite\na minor setback to 21452, the primary trend in this market remains facing\nnorthbound.<\/p>\n\n\n\n<p>Daily\nperspective:<\/p>\n\n\n\n<p>In\nsimilar fashion to weekly movement, resistance is seen at 27335 with daily\naction firming north of the 50-day SMA (blue \u2013 26728). Both this SMA and the\n200-day SMA (orange \u2013 26229) face a northerly bearing. <\/p>\n\n\n\n<p>H4\nperspective:<\/p>\n\n\n\n<p>Thursday\u2019s\nrecovery off October\u2019s opening level fixed from 26947, which aligns closely\nwith two trend line supports (25710\/27321), extended higher Friday as investor\nsentiment got a lift from stronger-than-expected US jobs data. The Dow Jones Industrial Average added 301.13\npoints, or 1.11%; the S&amp;P 500 advanced 29.35 points, or 0.97% and the\ntech-heavy Nasdaq 100 closed higher by 77.33 points, or 0.96%.<\/p>\n\n\n\n<p>Further\nupside from this point is likely to challenge weekly resistance at 27335.<\/p>\n\n\n\n<p>Areas\nof consideration: <\/p>\n\n\n\n<p>Traders\nlong from the 26947 neighbourhood may want to consider liquidating a portion of\ntheir position ahead of weekly resistance at 27335.The likelihood of active\nsellers being present here is high. A H4 close beyond 27335, and preferably\nbeyond the all-time high 27388, however, will confirm a strong bullish bias.\nLongs based on either the breakout candle or a retest at 27335 will then be an\noption. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"499\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-DOW-1024x499.png\" alt=\"\" class=\"wp-image-37325\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-DOW-1024x499.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-DOW-300x146.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-DOW-768x374.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-DOW.png 1509w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>XAU\/USD (GOLD):<\/strong><\/p>\n\n\n\n<p>Weekly\ngain\/loss: +0.64%<\/p>\n\n\n\n<p>Weekly\nclose: 1514.0<\/p>\n\n\n\n<p>Weekly\nperspective:<\/p>\n\n\n\n<p>Gold,\nin $ terms, recorded its third successive week in positive terrain, bolstered\nby a familiar support area at 1487.9-1470.2. Resistance is seen at 1536.9,\nwhereas two layers of support are visible at 1392.0 and 1417.8, in the event we\neventually push for lower ground. <\/p>\n\n\n\n<p>With\nrespect to the longer-term primary trend, gold has been trading northbound\nsince the later part of 2015 (1046.5).<\/p>\n\n\n\n<p>Daily\nperspective:<\/p>\n\n\n\n<p>Daily price brushed\naside the upper edge of a bullish flag (taken from the high 1557.1) and the 50-day\nSMA (blue \u2013 1504.3) last Thursday, supporting longs off the weekly support area\nmentioned above at 1487.9-1470.2. The next upside target from this region falls\nin at the 1535.6 September 24 high, closely shadowed by resistance at 1550.4.<\/p>\n\n\n\n<p>H4\nperspective:<\/p>\n\n\n\n<p>In\nwake of Friday\u2019s robust US non-farm payrolls data, the yellow metal clocked\nlower levels, though failed to push beyond 1503.1. As highlighted in Friday\u2019s\ntechnical briefing, the H4 candles have\nbeen busy carving out a consolidation between a support area coming in at 1481.1-1490.2\nand a resistance zone at 1519.9-1512.1 since early October. Note the week\nconcluded at the top edge of the said range. Outside of this consolidation,\nnearby resistance resides in the form of September\u2019s opening level at 1526.2,\nwhereas below we have October\u2019s opening level pencilled in from 1472.8. <\/p>\n\n\n\n<p>Technically speaking,\na breakout higher is the more likely route on the H4, considering the\nhigher-timeframe\u2019s picture. <\/p>\n\n\n\n<p>Areas of\nconsideration: <\/p>\n\n\n\n<p>Having noted\nhigher-timeframe action is poised to move higher, selling the top edge of the\ncurrent H4 range at 1519.9-1512.1, despite the area holding a number of times\nin the past, is considered chancy. <\/p>\n\n\n\n<p>An alternative is to\nsimply enter long at current price and position protective stop-loss orders\nbelow Friday\u2019s low (1503.1) in anticipation of further upside. In that case,\nkeep eyes on September\u2019s opening level at 1526.2 as possible resistance.<\/p>\n\n\n\n<p>More conservative\ntraders, on the other hand, may wait for a breakout north above 1526.2 to\noccur. While a break higher may be appealing, this leaves little room for manoeuvre\nto weekly resistance mentioned above at 1536.9. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"499\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GOLD-1024x499.png\" alt=\"\" class=\"wp-image-37328\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GOLD-1024x499.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GOLD-300x146.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GOLD-768x375.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/11\/2019-11-04-GOLD.png 1509w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The\naccuracy, completeness and timeliness of the information contained on this site\ncannot be guaranteed. IC Markets does not warranty, guarantee or make any\nrepresentations, or assume any liability regarding financial results based on\nthe use of the information in the site. <\/p>\n\n\n\n<p>News,\nviews, opinions, recommendations and other information obtained from sources\noutside of www.icmarkets.com.au, used in this site are believed to be reliable,\nbut we cannot guarantee their accuracy or completeness. All such information is\nsubject to change at any time without notice. IC Markets assumes no\nresponsibility for the content of any linked site. <\/p>\n\n\n\n<p>The\nfact that such links may exist does not indicate approval or endorsement of any\nmaterial contained on any linked site. IC Markets is not liable for any harm\ncaused by the transmission, through accessing the services or information on\nthis site, of a computer virus, or other computer code or programming device that\nmight be used to access, delete, damage, disable, disrupt or otherwise impede\nin any manner, the operation of the site or of any user\u2019s software, hardware,\ndata or property.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The headline seasonally adjusted UK manufacturing purchasing managers\u2019 index (PMI) rose to 49.6 in October, up for the second successive month but remaining below the neutral 50.0 mark separating expansion from contraction, according to Markit. <\/p>\n","protected":false},"author":8,"featured_media":81071,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[340,215,339,195],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/37321"}],"collection":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=37321"}],"version-history":[{"count":2,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/37321\/revisions"}],"predecessor-version":[{"id":37332,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/37321\/revisions\/37332"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media\/81071"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=37321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=37321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=37321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}