Intraday Technical Analysis 6 November

The markets were seen trading a bit subdued on Monday as investors brace for the U.S. mid-term elections due today. On the economic front, China’s Caixin services PMI was seen easing to 50.1 which missed estimates and was slower than 53.1 registered the month before.

In the Eurozone, the Sentix investor confidence index eased to 8.8 below estimates of 9.9. The services activity in the UK measured by Markit was also weaker at 52.2 for October.

The NY trading session saw the ISM non-manufacturing PMI easing to 60.3 which was higher than expected. However, the October’s print was a tad weaker from 61.6 measured the month before.

The RBA held its monetary policy meeting earlier today. As widely expected, the central bank left interest rates unchanged at 1.50%. The central bank is expected to leave its monetary policy unchanged at least into the first half of next year.

The European trading session kicks off with the German factory orders report. Data is expected to show that German factory orders fell 0.4% on the month following a 2.0% surge previously.

Markit’s final services PMI will be coming out later in the day. The Eurozone services PMI is expected to remain steady at 53.3.

The U.S. will be heading to the polls today for the mid-term Congressional elections. This is expected to bring some volatility to the markets.

Later in the evening, the overnight session will see the release of the quarterly employment report from New Zealand.

EURUSD intraday analysis

EURUSD (1.1400): The EURUSD currency pair was seen trading subdued on Monday. Price action attempted to rally back to the previous resistance area of 1.1435 region before currently pulling back lower. The 20-period EMA is seen offering dynamic support for the moment. However, a close below the 20-period EMA could keep the EURUSD biased to the downside.

GBPUSD intraday analysis

GBPUSD (1.3043): The British pound was seen maintaining the gains after opening on Monday gapping higher. After a quick fill of the gap, prices resumed the upside moment. The GBPUSD is now seen trading close to the previously breached support area of 1.3086. A retest of these level as resistance could establish a wide sideways range. A close above 1.3086 is required for the GBPUSD to seek further gains.

XAUUSD intraday analysis

XAUUSD (1228.82): Gold price was seen posting a gradual descent as price action is showing signs of easing momentum. With price trading below the main resistance area of 1238, we expect the direction in gold to be to the downside. The lower untested support at 1207.00 still remains the key downside target. However, any reversals in decline to the support level could keep price action a bit volatile.