The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
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.
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The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!