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.
What Will Move The Market On November 15-19?
After an extremely volatile week in the markets, traders await the next steps of the USD and stocks. What drivers will move the assets next week? Lets’ find out!
The main intrigue of this week is connected with the further performance of the US dollar. The USD strengthened last week on the Consumer Price Index report. Analysts and experts are concerned about inflation as looks like that unexpected and unwanted houseguest who just won’t leave. The US dollar index has reached the key ascending resistance line and some correction is expected at the beginning of this week. EUR/USD has reached March 2020 level, which is a huge support. Some reversal is expected in this currency pair with the target at 1.1540. Also, pay attention to GBP/USD, the pair might reach 1.3530. Monetary Policy Meeting Minutes will shake the Australian dollar on Tuesday. AUD/USD might bounce out of the 0.7270 support level and head towards 0.7395 after.
Investors will continue tracking the performance of indices. Last week NASDAQ (US100) has reached the upper border of the rising channel it has been moving into for 16 months. As usual, the price got rejected out of it. During this week US100 might slide further and reach the key support level of 15700. US500 has also reached, the global ascending resistance line and got rejected. The key support locates at the 4550 level where the price will head on this week.
Oil & metals
The oil prices kept moving in a range between $80 and $84.5 last week. The next week will be not less volatile for XBR/USD. If the price breaks through the main support of $80, it might fall to $77. The price of XTI/USD follows a similar scenario. After reaching $83.25, it reversed and fell to $79. If this resistance level gets broken, the price will plunge to $75 support. XNG/USD dropped hard last week. It reached $4.8 support and bounced back. During this week the price will be consolidating in the $5.3 and $4.8 range. Breakout of either side will define the future trend. Gold broke through the key descending resistance line and heads towards $1900. Before that, it might retest the $1830 key level from the above.
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.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
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.