Cautious optimism on Friday

Cautious optimism on Friday

Yesterday was Thanksgiving Day in the USA – the national holiday, that’s why we saw the reduction of volatility. The US dollar has started the day on the back foot, driven down by the poor US labor data. Unemployment claims came out worse than expected for the second consecutive week.

Investors are cautiously optimistic as new virus cases are constantly rising in the USA and Europe, and it’s still unclear how much time the vaccine roll-out will take and how many people will agree to make vaccinations. However, the risk-on sentiment still prevails on the market, but in a more modest manner.

EUR/USD is making efforts to escape the familiar range. If it manages to break the high of August 31 at 1.1937, the way up to the key psychological mark of 1.2000 will be open. However, we must admit it has failed to cross this level so far. Bulls need to be really strong, but they aren’t. Yesterday’s candlestick formed a long-legged doji. It has long upper and lower shadows that are almost equal in length and reflect a great amount of indecision in the market. That’s why it’s more likely that we’ll see a pullback rather than the breakout. The move below yesterday’s low of 1.1900 will drive the pair lower to the 50-period moving average of 1.1875, which has been supporting the pair so far.

EURUSDDaily.png

GBP/USD is edging higher as well driven up by the weak US dollar. The Brexit process is not moving anywhere. The main sticking point over fisheries is still on the table, while the deadline of the year-end is getting closer. EU Chief Brexit Negotiator Michel Barnier will hold a meeting of EU fisheries today, so we can expect some news, which will impact the pound today.

It’s unlikely to break the resistance of 1.3400 as it has failed to do it several times. The move below the recent lows of 1.3310 will drive the pair to the 100-period moving average of 1.3235. In the opposite scenario, the move above the key resistance of 1.3400 will drive the pair to the next round number of 1.3500.

GBPUSDH4.png

The S&P 500 is moving up. On the hourly chart, we can observe that every next green candlestick opens at a high of the previous one, which signals that momentum is bullish. The move above yesterday’s high of 3 637 will drive the stock index to Wednesday’s high of 3 650. On the flip side, the move below the support of 3 617 will open doors towards the psychological level of 3 600.

S&P500H1.png

Finally, let's discuss USD/JPY. It has broken the psychological level of 104.00 but briefly surged back above it. The combination of the weak US dollar with the current cautious sentiment should underpin the JPY and drive the pair down. If the pair closes below the recent lows of 103.70, the way to the low of November 6 at 103.25 will be clear. Resistance levels are 104.67 and 105.00.

USDJPYH4.png

Happy Friday!

TRADE NOW

Similar

What will move the markets on September 20-24
What will move the markets on September 20-24

Quadruple witching is gone and now there are no reasons for the market to hinder. From banks statements and economic data to gas storage reading and Fed’s Powell speech – get ready for active trading.

Strong US Retail Sales Pressed Gold
Strong US Retail Sales Pressed Gold

The US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.

Latest news

Where is Dogecoin?
Where is Dogecoin?

Did the era of the Dogecoin, the most famous cryptocurrency, come to its end, or it is just a calm before the storm? Let’s find out!

Key Market Driver: FOMC Statement
Key Market Driver: FOMC Statement

The FOMC, a committee within the Federal Reserve, will hold an important meeting and press conference on September 22 at 21:00 MT time (GMT+3).

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera