November (WK3) Forex Market Update

This week the European currency proved the weakness from the previous couple of weeks and the rallies continued on all the EUR crosses. The British Sterling on the other hand seemed to regain some of the lost strength but gave it back at the close of the week. The Australian Dollar was the strongest currency this week rising to the highs of the beginning of October. The Canadian Dollar benefited from another drop on the Oil price and is now retesting the high from 2009.

On the Indices, both the European and the American showed major recovery after a bounce off the 200 Moving Average. The DAX opened the week with a clear gap to the downside but closed it and kept going up for the entire week. In the US S&P and DOW retesting the previous high from last week while the NASDAQ is holding around the all time high once again.

Gold pulled even further now seen at around 1070 and still looking very bullish as Crude broke the 43 level and is currently holding at 41 USD.

Best Trades this week

  1. AUDCHF (4H Chart) – Continuation Long – 18.11.2015 – After breaking out of the resistance level around 0.71 we started looking into the lower time frames and a perfect entry was spot on the 4h chart. A pull back to the moving averages and a low test set up the entry parameters and the trade went all the way up to a +5% profit and still showing potential.

nov week 3 forex updates

 EFFECT OF THE NEWS LOOKING FORWARD

The start of the week should be a big one in terms of news announcements:

  • On Monday the EUROGROUP meetings along with the Federal Reserve announcement from US might trigger a fast beginning of the week. We obviously recommend extra caution on any ongoing positions;
  • Thursday is all about Inflation numbers from the UK and the speech from Monetary Policy Meeting in Japan – this could be the one leading the overall direction for the JPY crosses that have been ranging for a few weeks;
  • On Wednesday, the attention turns on to the US once again with the Unemployment claims as the day finishes with the Trade Balance from New Zealand – these ‘late’ news are usually big triggers for unexpected moves at the beginning of the Daily bar…
  • On Thursday the market should resume its usual behaviour slowed down by the Bank Holiday in US;
  • Friday, all eyes and years will be on any dovish or hawkish tone from the European Central Bank Financial Stability review. If this also meets the EUR:USD support level at 1.05 we can expect some action…

As always, make sure you are managing your trades with extra care around those periods…