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 22-26?
Last week was not full of events, but we still saw decent moves in the charts of majors, S&P500, NASDAQ, oil, and crypto. The upcoming week will bring even more volatility to your favorite assets! Let’s look at the forecasts.
The USD strengthened Friday and bottomed down to the support of July 2020 at 1.1260. This week, Wednesday will be the crucial day for the US dollar, as we await the US Preliminary GDP and the FOMC Meeting Minutes. While the GDP data will give an intraday opportunity for traders of the USD, the FOMC Meeting Minutes will grab the longer-term attention, as traders will be looking for insights on the economic outlook and tightening measures. For EUR/USD, the next target after the 1.1260 will be at the psychological support of 1.1200. The first resistance lies at 1.1460. Another currency in the focus of the week is the New Zealand dollar that is awaiting the RBNZ Interest Rate Decision during the Asian trading session on Wednesday. As the RBNZ is forecast to raise the interest rate, we may see the NZD outperforming. If the NZD strengthens, NZD/USD will surge to the 200-day SMA near the resistance of 0.71. On the downside, the support levels will be placed at 0.6980 and 0.6935. If you like exotic currencies, pay attention to USD/TRY. The pair rose significantly after the Turkish Central bank cut the interest rate again last week. As the indicators look overbought, a correction to the support of 10.65 might happen.
Last week, both S&P500 and NASDAQ soared to new highs. NASDAQ tested the resistance of 16 560 (the upper border of the channel), and S&P500 rose to 4720. The support levels for these indices lie at 15 920 and 4640, respectively. Also, HP Inc. (HP) and Dell Technologies (DELL) are reporting their financial data on November 23, after the market close.
Oil, gas & metals
The oil prices keep moving within a descending trading channel. The price of Brent tested the 77.70 level (38.2 Fibo level) on Friday. A continuation of the downtrend will pull the price of Brent lower to the support of 76. After the breakout of this level, the next support will lie at 72.70. As for WTI, sellers await the test of 74 with a further target at 70.60. The resistance is placed at 79.30.
Gold was consolidating last week between the resistance of 1870 and the support of 1850. Technically, the breakout of 1870 seems extremely likely with the next resistance at 1900. The cross of the support of 1850 will pull the asset lower to 1810.
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.