Markets in Details: 07 November 2018

7 November, 2018


  • Europe might ignore U.S. sanctions on Iran after France's Economy Minister moves forward with plans to defy oil sanctions and to improve the international role of the euro.
  • Italian Services PMI dropped to below 50 on Tuesday and retail sales slumped to negative, painting a weak economic outlook for the country.
  • Democrats have taken control of the House of Representatives after the midterm elections in the U.S. on Tuesday.

The focus of attention

  • Theresa May could call for an emergency Cabinet meeting this week to sign-off on UK's Brexit proposal. Ministers failed to reach an agreement on Tuesday.

Expected events

  • 07:00 GMT Germany will release German Industrial Production for September.
  • 08:30 GMT UK will release the HPI data for October.
  • 10:00 GMT Eurozone will release Retail Sales data for September.
  • 15:30 GMT U.S. will release Crude Oil Inventories data.

Technical Analysis

  • GBP USD is in a short-term uptrend move with both the EMA and RSI indicators pointing up. It has two support lines at 1.2957 and 1.2696.
  • EUR AUD has taken nosedive and is trying to find support to stop the weakness. RSI is about to cross 30 and could signal a pause in the short-term.
  • AUD USD is pushing away from EMA10 with RSI giving support rising closer to 70. Expect the uptrend to continue if the pair overcomes resistance at 0.7309 this week.
  • USD JPY failed to stay above its EMA10 signaling a short-term downtrend for today.
  • EUR USD has managed to stay above its EMA10 and could test 1.1493 resistance line given a supportive RSI reading of over 50.

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