Range Markets

During the upcoming trading week, traders and investors look to the release of EU PMI Manufacturing data and the release of the FOMC meeting minutes. The euro currency is likely to react to the release of the highly important preliminary German, French and EU Manufacturing numbers for the month of November.

The FOMC Meeting Minutes is expected to generate market volatility in the US dollar, bonds, and equity markets as the US central bank releases its latest thoughts on the US economy.

Traders will also be focused on UK PMI Services numbers, Canadian Retail data, and the release of Confidence data from the United States and eurozone economy.

Monday 23rd November, EU Manufacturing PMI

The EU Manufacturing Purchasing Managers Index is released by Markit Economics and measures the activity level of purchasing managers in the manufacturing sector. The manufacturing PMI is an important indicator of business conditions and the overall economic condition in the eurozone because the manufacturing sector represents nearly a quarter of total GDP. A reading above 50 indicates expansion in the sector and below 50 indicates contraction.

  • The EURUSD pair is only bearish while trading below the 1.1800 level, key support is found at the 1.1750 and 1.1600 levels.
  • If the EURUSD pair trades above the 1.1800 level, buyers will likely test towards the 1.1900 and 1.1920 resistance levels.

Tuesday 24th November, US Consumer Confidence

The Consumer Confidence released by the Conference Board captures the level of confidence that individuals have in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to the economic downturn. Generally, a high reading is also positive for the US dollar currency, while a low reading is negative for the US dollar currency.

  • The AUDUSD pair is bearish while trading below the 0.7260 level, key support is found at the 0.7200 and 0.7100 levels.
  • If the AUDUSD pair moves above the 0.7260 level, buyers may test towards the 0.7340 and 0.7400 levels.

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Wednesday 25th November, FOMC Meeting Minutes

The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.

  • The USDCHF pair is only bearish while trading below the 0.9200 level, further downside towards the 0.9110 and 0.9060 support levels seems possible.
  • If the USDCHF pair trades above the 0.9200 level, buyers are likely to test towards the 0.9250 and 0.9300 resistance levels.

Thursday 26th November, US Continuing Jobless Claims

US Continuing Jobless Claims is released by the United States Department of Labor measure the number of individuals who are unemployed and are currently receiving unemployment benefits. It presents the strength in the labour market. A rise in this indicator has negative implications for consumer spending which discourage economic growth. Due to the ongoing COVID-19 pandemic, the Continuing Jobless Claims number can be quite volatile on a weekly basis.

  • The GBPUSD pair is only bullish while trading above the 1.3240 level, key resistance is found at the 1.3360 and 1.3400 levels.
  • If the GBPUSD pair trades below the 1.3240 level, sellers may test towards the 1.3200 and 1.3100 levels.

Friday 27th Canada, Canadian Retail Sales

Canadian Retail Sales is released by Statistics Canada and measures the change in the total value of inflation-adjusted sales at the retail level. The figure represents a measure of consumption and consumer confidence inside the Canadian economy. Retail trade is an important leading indicator for Bank of Canada to gauge Canadian economic growth.

  • The USDCAD pair is only bullish while trading above the 1.3200 level, further upside towards the 1.3300 and 1.3380 resistance levels seems possible.
  • If the USDCAD pair trades below the 1.3200 level, sellers are likely to test towards the 1.3000 and 1.2840 support levels.

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