Jump in to know the key market events and trading ideas for this week!
Market updates on November 20
Key events ahead:
Chinese Loan Prime Rate 1Y – 03:30 MT time (01:30 GMT)
Canadian Inflation Rate YoY – 15:30 MT time (13:30 GMT)
American FOMC Minutes – 21:00 MT time (19:00)
- The US dollar has been rising against the Chinese yuan since Monday and seems to continue the same direction today. On the H1 chart of USDCNH, the 50-period Moving Average crossed the 100-period bottom-up yesterday, and the Parabolic SAR confirms the current uptrend. The resistance levels of 7.0360 and 7.0512 will be checking this scenario. However, the Chinese officials are reported to have expressed today once again their discontent with the US meddling into the Hong-Kong affairs. This should create additional volatility and pressure down on the USDCNH in the context of endless obstacles in reaching a trade truce between the US and China. For the bearish direction, the support levels of 7.0320, 7.0230 and 7.0150 may be placed.
- The CAD started the day with the correction course. On the H1 chart of CADJPY, it has dropped to the support level of 81.64, which was touched last Thursday. After that, the price showed a slight upswing. At the same time, the RSI crossed the 30% level bottom-up. This may be a good signal of the bullish takeover. For the upward direction, the resistance levels may be placed at 81.83 and the range of 82.40-82.50. The downtrend scenario may have 81.64 and 81.50 as the support levels.
- Against the Swiss franc, the US dollar has started weakening on Tuesday. On the H1 chart of USDCHF, the price touched the 0.9918 high, marking the local resistance level, and has been dropping since then. The bears need to watch the MACD and Awesome Oscillator crossing the zero line. Once it is done, the USD will likely aim at the support levels of 0.9895 and 0.9877.
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!