For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Trading plan for December 28
The economic calendar does not contain the significant data today that is why it is recommended to trade on the market sentiment.
Yesterday’s news renewed concerns on the trade war between the US and China. Trump’s administration plans an executive order that would protect US companies from using products made by Chinese firms Huawei Technologies and ZTE. That is why the uncertainties on reaching the trade deal between the countries increased the risk-off sentiment on the market. As a result, the Australian dollar fell yesterday. On the daily chart we can see that the downtrend for the pair is still on and parabolic SAR confirms that. On H1, the pair has been making modest gains towards the resistance at 0.7061. If this level is broken, the next resistance is placed at 0.7076. If the risk-off sentiment increases, AUD/USD will fall towards the support at 0.7015. The next support is at 0.6971
Let’s look how the New Zealand dollar has been trading against the USD. On the daily chart, yesterday’s news made the kiwi fall towards the 50-day MA. The indicators do not signal the reversal and the trend is bearish, according to Parabolic SAR. On the 1 hour chart, the pair has been trading sideways. If you scalp, you can use the rebounds from the borders of horizontal channel to open positions. If investors are more confident in the market’s conditions, the pair will rise towards the resistance at 0.6720. If this level is broken, the next resistance is placed at 0.6729. Otherwise, if bearish pressure increases, the pair will fall towards the support at 0.6693.
The higher prices seen today are generally related to the pandemic, that’s no doubt. US consumer prices jumped in October at the fastest pace in three decades putting the Biden administration on the defensive and increasing prospects that the Federal Reserve will raise interest rates next year. Jerome Powell says Fed will discuss speeding up bond-buying taper at the December meeting. What does it mean for markets?
It seems like most of the assets have joined Black Friday's sell-off with global indices, risky currencies, and commodities going down.
Although the last week was intense, this one may be more dynamic and volatile. After the FOMC meeting and controversial decisions from the Bank of England, we saw a historical pound decrease, and the gold plunge. And there’s even more for you.
After the US CPI last week came out above the forecast, traders started expecting a 75-basis point rate hike…
In this video, we will talk about the potential change of a trend in the euro, another stock rally amid a global downtrend, gold prospects, and news that shakes the world right now. It’ll be a helpful video you don’t want to miss.