The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
Market updates on November 18
- The EURUSD is likely to continue the upward trend taken on Thursday last week, with regular bearish downslopes on the way. On the H1 chart of EURUSD, a local drop is currently taking place. The RSI has recently crossed the 70% upside-down. Therefore, the bears will be guiding the price for some time. The support levels they will be looking at may be located at 1.1044, 1.1016 and 1.0998. While the general uptrend may have 1.1063 and 1.1076 as resistance levels.
- The GBP is also showing a gradual rise against the USD. On the H4 chart of GBPUSD, the uptrend has started last Thursday and is currently on the way. A 3-weeks high of 1.2961 and a 4-weeks high of 1.2992 are the limits from the resistance side for the upward movement. However, it may soon revert to the downward trend as the RSI is currently in the oversold zone. The bearish direction in this scenario may have the support levels located at 1.2900, 1.2874 and 1.2828.
- The USDJPY pair is in a local decision-making moment. On the H4 chart, it is testing the resistance level of 108.85 – the level it dropped from last Wednesday. If it is broken, the bulls will likely rule the market, with 109.09 and 109.21 checking the uptrend. Otherwise, the low of 108.33 may be marked as the support level.
The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.