Commodities Up, Dollar Down Ahead of The NFP

Gold tests 1850 USD/oz resistance

Oil breaks the upper line of the flag and aims higher

American Indices keeping close to the all-time highs

European Indices, on the other hand, performing slightly worse

Dollar Index going deeper again

EURUSD continuing a great upswing

EURJPY testing important horizontal resistance. Double top possible

AUDJPY bounces from the neckline to test important horizontal support

USDCAD continues the downswing after breaking crucial horizontal support

For a look at all of today’s economic events, check out our economic calendar.

CHN50 Selling Continues After a Pullback

Chinese index A50 is strongly bearish. We could see multiple rejections after some pullbacks and the price is at the important support.

If we see a pullback towards POC1 or POC2 , new wave of sellers will probably start a fresh wave of selling. The first POC 15170-15215 has a confluence with 50.0 fib while the POC2 15310-15350 makes a confluence with the 88.6 Fib. Additionally, there is also an inner trend line whichs adds for a confluence and a retest of the POC2 offers a very good R:R for swing traders too. Targets are 15008 and 14970.

For a look at all of today’s economic events, check out our economic calendar.

 

Without Trade Deal US Markets Feel Better than Chinese

Interestingly, the Chinese markets failed to maintain a positive mood, quickly returning to a decline on Wednesday morning. China A50 Blue Chip Index lost 0.6% today, declined 4.5% from its local peak levels on November 7. For comparison, the S&P500 rose by 2.5% over the same period.
It seems that fewer traders and investors are making decisions depending on the tone of comments and pay more attention to the economic indicators. And in this case, the strength is on the side of the US. F or export-oriented China industrial production is the primary driver while for the US this is consumer spending. So traders and investors are watching these areas with the most considerable attention. Fresh data from China showed a decline in industrial profits against last year’s levels, which brought back fears of the consequences of trade wars.

The US consumer confidence index published on Tuesday marked the fourth month of decline in a row. However, it remains at very high levels that still can support the economy. More accurate data will be available this afternoon with the release of personal income and outlays statistics in October.
The US and Chinese politicians have consistently argued that the deal is important and hits the opposite side more. However, the markets and facts by now seems on the US side. We may see this both in the more robust stock markets and in the dynamics of the currency. The dollar was rebounding in November, as markets were dumping the soon-to-be-signed “Phase 1”.

The Chinese yuan, however, was losing ground and failed to consolidate below 7.0 per dollar. All this indicates that time is playing against the yuan and in favour of the dollar.

This article was written by FxPro