Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Market updates on November 25
- During the weekend, China announced that it will raise punishments for violations of intellectual property rights. That move may be considered as a good step towards the US-China trade deal. It boosted the risk sentiment in the market. The Australian dollar inched higher towards the resistance at 0.6798 on H4 but slid down to the descending trend line and the support level at 0.6785. If this level is broken, the next support will lie at 0.6776. If the pair retests the 0.6798 level, the chance of reaching the resistance at 0.6810 will increase.
- USD/JPY has strengthened and tested the resistance at 108.85 on H4. In case of a breakout of this level, bulls will push the pair to the next resistance at 108.97. On the other hand, if the risk sentiment falls, the pair will be driven lower to the 108.65 support level. The next key level in bears' attention will be at 108.55.
- The risk-on sentiment resulted in the strength of the Chinese yuan. On H4, the pair has fallen lower towards the 50-period SMA at 7.0260. At the moment of writing, bulls have been making attempts to recover to the 7.0323 level. If this level is broken, the next resistance will lie at 7.0430. If bears succeed in the test of the 7.0260 level, further supports will lie at 7.0230 and 7.0164.
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
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.
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.
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.