Forex Signals Brief for Nov 26: A Big Week for US Markets
Rowan Crosby • 2 min read
US traders might have had an extended holiday last week, but they will have their work cut out for them come Monday, with a host of news and economic events ready to keep volumes high.
World leaders are scheduled to meet for the G20 and the main items on the agenda are once again trade and climate change. With the US taking up a strong stance on trade with China and other countries, there is certain to be tension in the air. That said, much of the negative news is likely already priced in.
Throughout the week, we have two big data releases, with US GDP and the FOMC minutes, which will likely add more fuel to the fire. The USD has been strong for the most part, while equities sell-off and there might be more of the same depending on what the numbers tell us.
Out of Europe, there are a number of key events with plenty of German data as well as Eurozone CPI. Mario Draghi will be keen to start seeing some signs of inflation.
All that coupled with more Brexit headlines, an oil market crash and Bitcoin capitulating, means that we have plenty on the agenda.
Forex Signal Update
The FX Leaders Team, finished with 13 winners from 17 signals, in what was a really strong result from the guys.
DAX – Despite the selling in world markets, support in the DAX is still holding at 11,000. If we get a flush lower, we could look at buying the dip here.
Gold – Active Signal
Gold has pulled back a little bit from its recent run-up, but given the sentiment at the moment, there is still a bit of a bid for gold and it might be worth buying the dip here. Price has been strong since hitting 1200.
AUD/USD – Active Signal
The risk-off mood continues to carry on in early Asian trade and we are seeing more weakness in the AUD/USD. The Aussie popped to 0.7300 last week but just couldn’t sustain it and we are hoping for a bit more downside to come.
Bitcoin and the other major cryptocurrencies have had a rough weekend as prices have capitulated to new lows. The positive is that in early Asian trade markets are pulling back, but there is clearly some serious negative sentiment around at the moment.
BTC took out $4,000 and pressed as low as $3,500, before staging a bit of a rebound.
The big fear at the moment is that investors are getting worried about being left holding the bag now that the music has stopped, so any pop might just get hit with more selling.
If BTC can’t get back above $4,000 and hold, look out below.