The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
Market updates on December 2
Key events ahead:
German Markit Manufacturing PMI Final – 10:55 MT time (08:55 GMT)
American ISM Manufacturing PMI – 17:00 MT time (15:00 GMT)
- EUR has started the day with a passive sideways movement. On the H4 chart of EURUSD, the Bollinger’s bands are pinched together. That means most probably the market is gathering power to start a more active movement soon. The MACD is slowly rising and preparing to cross the zero-line bottom-up. Once it is done, that would confirm the market’s intention to make a bullish move. For this scenario, the resistance may be placed at 1.1024 and 1.1029. The supports may be located at 1.1003 and 1.0990.
- USDJPY made a rise to the level of 109.70 this morning and bounced down. On the H4 chart of USDJPY, the Stochastic is preparing to enter the overbought zone, while the MACD is within the peak level. These indications mean that the price is likely to keep rising or move sideways for a while, before dropping. Once the Stochastic’s fast line crosses the slow one upside-down above the 80% level and the MACD rises above the signal line, that would be a signal that the market is overbought and it is time to open shorts. In this case, the support may be placed in the range of 109.45 – 109.41. The resistance may be kept at 109.70.
- USD is in an indecisive mode against the CAD so far. On the H4 chart of USDCAD, the price is continuing the sideways movement that has been in place since last Wednesday. The Bollinger’s compressed bands and the MACD’s low magnitude movement right at the zero-line show that the market is consolidating before making a stronger move in either direction. The support may be located within the range of 1.3271 – 1.3262. The resistance levels may be placed at 1.3297, 1.3308 and 1.3324.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The market has started the week with a mixed sentiment…
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.