Trading plan for 15/11/2017

Risk aversion continues to increase. Particularly clear is the pressure on commodity markets. In addition, there is a lot of doubt about the reform of the US tax system. EUR/USD after yesterday 1.0% shot to 1.18 remains close to this barrier. USD / JPY is heading towards 112.94, which cannot be surprising, as the Asian markets drops. Indices in Shanghai and Hong Kong are down more than 0.5%. On the Tokyo Stock Exchange, Nikkei 225 drops more than 1.5%. The currency of Antipodes remains weak.

On Wednesday 15th of November, the event calendar is busy with important data release. During the London session, France will provide Consumer Price Index data, The UK will post Claimant Count Change, Unemployment Rate and Average Earnings Index data and the Eurozone will post Trade Balance data. Later on, the US will release Consumer Price Index, Retail Sales and Empire State Manufacturing Index data.

GBP/USD analysis for 15/11/2017:

The Claimant Count Change, Unemployment Rate and Average Earnings Index data are scheduled for release at 09:30 am GMT. The market participants expect an increase in those individuals who are out of work and who are claiming some sort of unemployment benefit from 1.7k to 2.0k, but the unemployment rate should remain steady at the level of 4.3%. The wages are expected to decrease slightly from 2.2% to 2.1% on a quarterly basis. The recent interest rate hike by Bank of England was conditional, so, in order to revive the second BoE rate hike possibility, the wages must grow more substantially. The other reason for higher wages is UK rate curve steepening (assuming a smooth Brexit). Nevertheless, yesterday's CPI data disappointed the market participants, so the situation is already worsening for BoE.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market remains directionless as the price is still stuck in a horizontal zone between the levels of 1.3025 - 1.3321. Only a deliberate impulsive violation of one of this levels will show the direction of the future movement. The momentum oscillator is as well hovering around its fifty level.

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Market Snapshot: Gold bounces from channel support

The price of Gold had bounced from the channel support around the level of $1,270 as the risk aversion increases. Nevertheless, no new high or low was made so far, so the market remains locked in a channel between the levels of $1,290 - $1, 270. The key level to the upside remains at the level of $1,305 and the key level to the downside at $1,260.

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Market Snapshot: USD/JPY breaks out below support

The price of USD/JPY has broken out below the technical support at the level of 112.94 after a fake black trend line violation. The momentum turned sharply to the downside and the next technical support is seen at the level of 112.27. No signs of any divergence yet.

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