Aussie back under pressure as market sentiment wobbles, with the risk-sensitive AUD losing traction on Tuesday. Monday’s enthusiasm about Moderna’s COVID-19 vaccine success was offset by concerns about tighter restrictions as infections and deaths continue to rise in the U.S. and Europe.

The sour market mood has led to a broad decline in equity markets. Major European indices have fallen between 0.45% and 0.85% while on Wall Street, the Dow Jones Index is trading 0.45% lower, with the S&P Index down 0.2% and the Nasdaq Index trading virtually flat.

From a technical perspective, the Aussie currency remains trading in a short-term uptrend while above the trendline from the November 2 lows.

Today's Market Review includes:

  1. Gold prices have the opportunity to be bought in the short term amid the outlook for a weakening US dollar and stock index due to concerns about the high number of coronavirus cases and a pessimistic statement from Fed Powell, which signaled that the emergency credit program aimed at overcoming the economic downturn from the pandemic must be continued. Furthermore, today's focus will be on US economic data such as Building Permits and Housing Starts which will be released at 20:30 WIB.
  2. Oil prices have the potential to be sold amid concerns about slowing fuel demand amid the still high number of coronavirus cases and the increase in US crude oil reserves in the American Petroleum Institute (API) report last night. Today's market focus will be on US crude oil reserves data from the Energy Information Administration (EIA) at 22:30 WIB.
  3. EURUSD has the opportunity to be bought in the short term amid the outlook for a weakening US dollar due to the high number of coronavirus cases, the still-hot political tension in the US and a dovish statement from Fed Powell. The market focus today will be on the Eurozone Final CPI data which will be released at 17:00 WIB.
  4. GBPUSD also has the opportunity to be bought in the short term due to the outlook of the weakening US dollar and the emergence of speculation in the market that a Brexit deal can be reached early next week. Today's market focus will be on the UK CPI and HPI data released at 14:00 WIB and 16:30 WIB and the speech by Bank of England chief economist Andy Haldane at 17:30 WIB.

For today's prediction, it is on the GOLD pair, and it is estimated that it will continue to decline, and the recommended OP is SELL at level 1873.

DAILY PICK

  • TP 1 = 1868 (5 point)
  • TP 2 = 1863 (10 point)
  • SL 1 = 1876 (3 point)
  • SL 2 = 1878 (5 point)

Always prioritize Money Management and Risk Management.

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