Forex Signals Brief for Nov 28: Will Thanksgiving Be Overshadowed By China Angst?
Rowan Crosby • 2 min read
As US traders get ready to take an extended break, there are still some worries going on in the background.
US-China trade tensions continue to dominate, but it will be interesting to see if there are any more headlines later today. We’ve just heard that President Trump has signed legislation that supports Hong Kong anti-Government protestors.
One China official labelled the US a ‘complete bully’ and the Hong Kong Government has come out against it. That said, with the likely lower volumes ahead, it will be interesting to see how markets react. As we know, there will likely be little US action for a number of days with most taking extended breaks for Thanksgiving.
At the same time, we are also seeing some action in the GBP/USD with the lastest polling suggesting Boris Johnson’s Government has clear support headed into the election, which will be a big boost to the Pound and also the Brexit cause.
As a result, the Pound will be one to watch today as it also moved strongly yesterday and is looking at a test of the highs at 1.3000.
Forex Signal Update
The FX Leaders Team finished with one win from three signals in what was a very European focus session for the guys.
USD/JPY – Pending Signal
The USD/JPY has been bid up on the back of some strong US data overnight and we are now looking at a break of key resistance at 109.50. That opens this pair up to another leg higher and we are on the lookout for a long entry.
EUR/JPY – Pending Signal
The EUR/JPY has been in a bit of a range recently but is starting to push higher. We continue to hunt a long entry either on a break of resistance or a slight pullback to support.
BTC continues to be a very interesting technical trade and we have again reached another possible inflection point.
Now that the $7,000 level held as we suspected it might, price has broken above $7,400.
However, if you look at the yellow lines on the charts, which indicate recent key levels, we can see that price has converged in the area where the downtrend meets resistance.
That is going to add a double layer of selling pressure, so I would think that gives us an OK opportunity for a short position. Then with $8,000 above which could be used as a stop loss, that is not a bad risk-reward for another run at the recent lows under $7,000.