Currency market updates on December 4

Currency market updates on December 4

Wednesday marks the middle of the trading week. Below you will find the useful information for successful trading. 

Key events ahead

  • American ADP Non-Farm Employment change – 15:15 MT time (13:15 GMT)
  • Bank of Canada Rate Statement – 17:00 MT time (15:00 GMT)
  • American ISM Non-manufacturing PMI – 17:00 MT time (15:00 GMT)

EUR/USD is preparing for a decisive move

EUR/USD rose above 1.1070 on Monday and has been consolidating under the resistance level of 1.1090 since then. On the H1, Bollinger bands compressed. This confirms that the market is gathering power to make a more decisive move in the nearest future. The resistance level of 1.1090 has been capping the upward movement of the price since the beginning of November and may require extra effort from the bulls to break. However, the Stochastic Indicator’s fast line already crossed the slow one bottom-up within the oversold zone. This may signal a good moment to open longs. Otherwise, if the support level of 1.1070 is broken later, the price may go down to the support levels of 1.1005 and 1.0990, where it has been trading during the last week of November.

EURUSDH1.png

GBP/USD under pressure down

Yesterday, the British pound rose to the resistance level of 1.3008 against the US dollar. On the H4 chart of GBP/USD, since May 2019 this level was reached only on November 21. Today, the price is more likely to decline as the RSI and Stochastic are in the overbought zone and will likely leave it soon. Once the support level of 1.2990 is crossed, the next target for the bears may be located at 1.2926. Otherwise, an additional resistance level to check the bullish move may be placed at 1.3000, being a strong psychological barrier to break.

GBPUSDH4.png

More concerns about the trade war affecting USD/JPY

US President Donald Trump announced a trade deal with China might not come until after the 2020 US presidential election. This got traders worried. The demand for the safe-haven Japanese yen rose pulling USD/JPY down.

On the H4 chart, the RSI, MACD, and Stochastic Indicators are all reporting the oversold state of the market. Indeed, the price has dropped to 108.50 yesterday and has been in a sideways movement since then. Very likely, it is preparing for a correction. An intermediary resistance level to check that may be located at 108.78 with the next one at 109.20. Otherwise, the support may be placed at 108.30.

USDJPYH4.png

Bank of Canada announces the interest rate

Today, the Bank of Canada will announce the interest rate. During the previous session, it was decided to keep it at 1.75%, the highest level since 2008. The policymakers did not express any inclination to change it. However, the governor Mr. Poloz commented that they would observe how well the dynamics of the Canadian economy perform within the context of the global slowdown. Hence, the steady rate signalling the resilience of the Canadian economy may boost the Canadian dollar.

                                                                                              TRADE NOW

Similar

Latest news

Deposit with your local payment systems

Learn more

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 00:30:00

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