Weekly Market Commentary | 05.12 – 11.12

Eager to know what’s going on this week? Take a quick tour of our market news, economic updates, and trading setups to stay up-to-date and in-the-know!

Monday>

– The new week has already started with disappointing Caixin Services PMI data from China. Here we fell to 46.7, which is lower than expected, as well as lower than the number from the previous month

– We will receive more PMI Services data from Europe today and even more data from the US later on where the ISM Services is expected to come strong on 53.5

Tuesday>

– On Tuesday, the markets will be influenced by the RBA interest rate decision where the general consensus is the 25bp hike from 2.85% to 3.10%

Wednesday>

– Wednesday shall start with another important number from Australia – GDP which is expected to come to 0.6%

– We will probably witness another interest rate hike as well, this time in Canada where we are expecting to see a 25bp rise, from 3.75% to 4%.

Thursday>

– Thursday will be surprisingly quiet with no Tier-1 data in the calendar

– Other & less relevant data include the GDP from Japan, Ivey PMI from Canada, and the usual Unemployment Claims from the US

Friday>

We will start Friday with inflation data from China and finish with PPI data from the US and the Prelim UoM Consumer Sentiment which is expected to come relatively low on 56.9

Setups for This Week:

EURAUD

Primary View:

The pair continues trading inside of a rectangle pattern (blue above major long-term support (orange))

We are under the influence of the double bottom formation so the move to the upside is slightly more probable

Breakout of the yellow resistance will give us a proper buy signal

Alternative View:

Price breaking the orange support would give us a legitimate signal to sell

USDCHF

Primary View:

The pair is currently balancing on an absolutely key, long-term support

The pair is currently fighting on the 0.939 area (yellow), which was a key resistance in the second half of the last year and on the long-term up trendline (black)

Breakout to the downside will be proper, sell signal

Alternative View:

Price coming back above the two supports with a nice bullish candlestick formation will be a signal to go long

CHFJPY

Primary View:

The second half of November wasn’t great for this pair as the price was going lower pretty much every day

Sellers finally managed to reach key support on the 143.3 (blue) which was a key resistance in the summer

This is a great chance to initiate a bullish bounce

Alternative View:

If the price breaks the blue support, we will receive a major sell signal