Weekly Market Commentary | 20.11 – 26.11

Curious to know what’s happening on the markets this week? Take a quick tour of the latest news, economic updates, and trading setups that will keep you up-to-date and in the know!

Monday:

• A soft start of the week with no major economic data releases.
• Key event: A speech by the Bank of England Governor Bailey anticipated during the late hours of the American session.

Tuesday:

• Meeting minutes from the Reserve Bank of Australia set to be released.
• Canada’s inflation figures are on the radar, with a forecast of 0.2% monthly increase.
• U.S. existing home sales data expected & predicted at 3.9 million.
• FOMC meeting minutes, unusually scheduled for Tuesday, will be closely watched.

Wednesday:

• The day begins with a speech by the Reserve Bank of Australia Governor Bullock.
• Unemployment claims from the US published earlier than usual due to Thanksgiving on Thursday.
• Revised University of Michigan consumer sentiment in the U.S., anticipated to be around 61.1.

Thursday:

• European PMIs of key economies (Eurozone, France, Germany, UK) expected to fall below the 50 mark.
• American markets closed for Thanksgiving Day.

Friday:

• Focus shifts to Germany’s IFO business climate index.
• ECB President Lagarde scheduled to speak.
• Retail sales data from Canada.
• US PMIs wrap up the week: Manufacturing PMI expected at 49.5 and Services PMI at 50.4.

 Setups for This Week:

NASDAQ:

• Primary View:
  • NASDAQ encountered a crucial horizontal resistance at 15,900 points, a peak previously seen in mid-July.
  • The market showed a reaction with a bounce off this level, raising anticipation for future movements.
  • A successful breakout above this resistance (yellow line) would be a strong indicator of a buying opportunity.
• Alternative View:
  • Remaining below this 15,900-point threshold suggests a potential short-term selling opportunity or profit-taking window.

AUDUSD:

• Primary View:
  • The AUDUSD has recently made a significant move by breaking through the resistance just above the 0.65 (orange line).
  • Staying above this broken resistance solidifies a bullish stance, indicating a solid buy signal.
• Alternative View:
  • A reversal below the 0.65 level (orange area) would switch the sentiment to bearish, serving as a cue for selling.

EURGBP:

• Primary View:
  • The EURGBP has successfully surpassed a key horizontal resistance at 0.874 (green line).
  • Maintaining a position above this level keeps the bullish momentum alive, validating a buy signal.
• Alternative View:
  • Should the pair fall back below the 0.874 mark, it would negate the bullish outlook and act as a trigger for selling.