{"id":158405,"date":"2019-10-25T09:00:13","date_gmt":"2019-10-25T13:00:13","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=158405"},"modified":"2019-10-25T08:29:20","modified_gmt":"2019-10-25T12:29:20","slug":"fresh-sentiment-triggers-directional-shift","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/fresh-sentiment-triggers-directional-shift\/","title":{"rendered":"Fresh Sentiment Triggers Directional Shift"},"content":{"rendered":"
October 25, 2019<\/div>
\r\n<\/div><\/div>

By <\/strong>Orbex<\/strong><\/a><\/p>\n

Another choppy and heavy session marked Thursday\u2019s trading as highly volatile on the back of geopolitical and economic headlines.<\/p>\n

ECB\u2019s president Draghi re-cited<\/a>\u00a0downside risks and low inflation, BoJo pushed for an early election, hitting back at Labor. Finally, Mike Pence, US Vice President, delivered a worrisome US-Sino speech.<\/strong><\/p>\n

Meanwhile, US data were mixed, with bearish momentum offsetting upbeat data and vice versa. Regardless, gold did make a move for a number of reasons.<\/p>\n

\u201cArrivederci\u201d speech Shapes Fresh Declines<\/strong><\/h2>\n

The euro fell across the board<\/strong>\u00a0following Mario\u2019s speech yesterday at his last policy meeting. The now-former President\u00a0reiterated September\u2019s dovish policy language<\/strong>.<\/p>\n

With\u00a0Europe\u2019s growth outlook stuck and inflation stuck<\/strong>\u00a0ECB\u2019s accommodative policy will remain unchanged at least until Lagarde\u2019s first speech.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

EURUSD Test Below 1.11 Hints to Further Softening<\/strong><\/h2>\n

Euro traders eyed the 1.11 round level following Draghi\u2019s speech. Price action remained contained within certain limits but these were wide.<\/p>\n

The currency pair\u00a0is expected to remain under pressure\u00a0<\/strong>with the next breakeven stops seen near 1.060 and then 1.1047. The latter is the 1.618 Fibonacci extension of the first corrective wave down to 1.11 test arear.<\/p>\n

The pace of the decline should\u00a0depend on how the dollar performs.<\/strong><\/p>\n

\"eurusd\"<\/p>\n

BoJo Pushes For Early Election While Waiting on EU\u2019s Extention Approval<\/strong><\/h2>\n

UK\u2019s PM supported the dovish-President theme yesterday.\u00a0Calling for an early election on December 12<\/strong>\u00a0he triggered a fresh sentiment biased to the downside.<\/p>\n

The direction of the pound in the next few trading sessions will depend on whether the\u00a0EU grants an extension and for how long.<\/strong><\/p>\n

GBPUSD Corrects Deeper, Now Eyeing 1.27<\/strong><\/h2>\n

The pound broke below the 1.28 handle yesterday following the latest headlines.<\/p>\n

Cable traders could send\u00a0prices lower for a deeper correction<\/strong>, where wave C of the zigzag-looking pattern could complete as the\u00a0chances of EU delaying the response to UK\u2019s Brexit extension request increase.<\/strong><\/p>\n

\"gbpusd\"<\/p>\n

Gold Up As Geopolitics and Economics Take Their Toll<\/strong><\/h2>\n

Poor Brexit and<\/a>\u00a0ECB flows kept gold upbeat yesterday as the risks of uncertainty and further Europe-wide economic hurdles weighed on sentiment.<\/p>\n

In addition, markets were seen reacting risk-averse on the back of US-Sino headlines and\u00a0Pence criticized \u201cChina\u2019s actions in Hong Kong\u201d.<\/strong><\/p>\n

XAUUSD Points to Higher Levels But Appetite Could Shift Anytime Again<\/strong><\/h2>\n

Following the\u00a0triangle breakout<\/strong>\u00a0markets could expect the yellow metal to appreciate further now.<\/p>\n

With the current medium-term structure however pointing to a\u00a0bearish complex correction<\/strong>\u00a0investors should remain cautious. Gold could simply be on a throwback formation.<\/p>\n

\"xauusd\"<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Another choppy and heavy session marked Thursday\u2019s trading as highly volatile on the back of geopolitical and economic headlines. ECB\u2019s president Draghi re-cited\u00a0downside risks and low inflation, BoJo pushed for an early election, hitting back at Labor. Finally, Mike Pence, US Vice President, delivered a worrisome US-Sino speech. Meanwhile, US data were mixed, […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-158405","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=158405"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158405\/revisions"}],"predecessor-version":[{"id":158413,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158405\/revisions\/158413"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=158405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=158405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=158405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}