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.


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.


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.


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


What to Trade on August 29 - September 2?
What to Trade on August 29 - September 2?

Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.

Latest news

FED and BOE Make Another Attempt to Beat Inflation
FED and BOE Make Another Attempt to Beat Inflation

The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.

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