Trading plan for 29/11/2017

Asian markets were calmly tolerating the recent reports of North Korean ballistic launches. Indexes are slightly on the plus side, there is no sign of upward pressure on emerging markets. In the G10 basket, the best deal is a British Pound reinforced by information about the negotiators' agreement on Brexit. Gold is stable, crude oil is weaker after API report.

On Wednesday 29th of November, the event calendar is busy with important data releases. During the London session, the UK will release Net Lending to Individuals data Eurozone will post ECB Financial Stability Report data and Germany will reveal CPI preliminary data. During the US session, GDP Second Release data, Pending Home Sales and Crude Oil Inventories data will be released. There are speeches from FOMC members Jannet Yellen and William Dudley scheduled as well.

EUR/USD analysis for 29/11/2017:

Yesterday's reports of the launch of an intercontinental ballistic missile by North Korea did not have much impact on the financial markets. The most interested South Korean won is actually today the strongest currency in emerging markets. The calm of the markets comes from the fact that ballistic tests were expected, and leakage on them came from Monday.

Speech of Jerome Powell, future Fed Chairperson, who at some point decided to take a slightly hawkish pose, did not shake the markets either. At the end of the day, his remarks on the need for policy normalization through a gradual raising of interest rates go away unnoticed. Investors have been trying to focus their attention on the index of US home market sentiment, which was at the 17-year highs and surprised market participants (129.5pts, consensus: 124.0pts). Such a clear rise of the rating was due to a better estimate of expectations, which shot to 113.3 pts versus 109.0 pts recorded at the end of October. The volatility of the American currency has clearly highlighted the withdrawal of some of the Democratic Party's representatives from meeting with US President Donald Trump. The reason was a controversial post on the Twitter portal, which according to the representatives, undermined the credibility of one of the negotiating parties.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market retraced 50% of the previous swing up and broke below the technical support at the level of 1.1856. Currently, this level is being tested from below, but the market conditions do not yet favor the upside. The next technical support is seen at the level of 1.1806 (61%Fibo). The key level to the downside is the technical support at the level of 1.1725.


Market Snapshot: USD/CAD testing the upper channel line

The price of USD/CAD is testing the level of 1.2815 where the upper channel line is providing the dynamic resistance. Any breakout above this level would result in an immediate test of the recent swing high at the level of 1.2919, but so far the market conditions are getting overbought and a move back to the channel zone is expected before any rally occurs.


Market Snapshot: EUR/GBP at the support

The price of EUR/GBP is testing the support at the level of 0.8817 and if this support is broken, then the test of the golden trend line around the level of 0.8783 is very likely. The current market conditions support the downward bias, but there is a bullish divergence starting to form as well.


The material has been provided by InstaForex Company -