Forex technical analysis:
DXY retreated to earlier gains on Friday and edged lower as uncertainty over the future of the U.S.-China trade deal continued to unsettle investors. But trading markets have been shorter since last week’s U.S. Thanksgiving holiday, limiting exchange rate volatility. Earlier, DXY rose to its highest level of 98.544 since October 15, after being virtually flat last week.
China has vowed to call for “resolute countermeasures” after U.S. President Donald Trump approved a measure Wednesday to support pro-democracy protesters in Hong Kong. China has not stated whether the move will have any impact on trade talks. Negotiators from the world’s two world’s largest economies have been stressing for weeks to hammer out a “phase one” trade deal that markets hope will be signed by the end of the year.
Better-than-expected inflation in the euro zone in November helped the EURO rise slightly, but inflation remains below the ECB’s target, then the prospect for the future remains uncertain. In summation, while DXY’s Intraday gains were held back, DXY’s 0.9% gain in November, its best monthly performance since July, continued to benefit from a relatively strong economic performance. Data released on Wednesday presented a slight rebound in U.S. Economic development in the third quarter, in contrast to other indicators that suggest a slowdown in global economic activity.
Forex fundamental analysis:
DXY’s rally on Friday was held below 98.55, with the correction supported above 98.22 and closing at 98.27, meaning the USD is likely to hold the correction after a short rally. If DXY rises below 98.50 today, the quarry of the post-market correction will point to 98.15-98.05. Today, DXY short-term resistance at 98.45-98.50, short-term important resistance 98.60-98.65. DXY short-term support at 98.15-98.20, short-term important support at 98.00-98.05.
EUR/USD fell above 1.0980 on Friday, rebounding below 1.1030 and closing at 1.1017, meaning the EUR/USD is likely to remain on the rebound after a short-term decline. If EUR/USD falls above 1.0990 today, the goal of the post-market rally will be 1.1035-1.1055. Today EUR/USD short-term resistance at 1.1030-1.1035, short-term important resistance at 1.1050-1.1055. EUR/USD short-term support at 1.0990-1.0995, short-term important support at 1.0960-1.0965.
Forex Trading Strategy Recommendations:
DXY: 98.45 Sell, 98.70 Stop Loss, 98.05 Take Profit
EUR/USD: 1.0990 Buy, 1.0960 Stop Loss, 1.1055 Take Profit
GBP/USD: 1.2895 Buy, 1.2855 Stop Loss, 1.2980 Take Profit
USD/CHF: 1.0020 Sell, 1.0045 Stop Loss, 0.9960 Take Profit
USD/JPY: 109.65 Sell, 109.90 Stop Loss, 109.25 Take Profit
AUD/USD: 0.6780 Sell, 0.6800 Stop Loss, 0.6735 Take Profit
USD/CAD: 1.3255 Buy, 1.3230 Stop Loss, 1.3330 Take Profit