Currency Strength Meter: 29th November
The currency strength meter this week highlights the stronger currencies are USD, CHF and JPY. The weakest currencies are NZD, AUD and CAD. This shows a clear risk off sentiment in the market as haven currencies get stronger and risk currencies weaken. The market was flat last week as the US were on holidays until the announcement of a new Covid variant sparked fear in the market which saw risk currencies drop significantly. The USD is in a reversal zone which could see it weaken in the short term if the Covid news doesn’t get worse.
Trending or Reversal Pairs of the week:
NZDUSD, NZDCHF, NZDJPY, AUDUSD, AUDCHF, AUDJPY.
The data this week is all at risk due to the new Covid variant which could overshadow all of the news releases. If the news of vaccines inefficiency against the new variant arises we could see countries talk of lockdown which will add risk and fear to the market. This could see the current risk off sentiment in the market continue.
In other news we have Fed Chairman Jerome Powell speaking and testifying which could add volatility to the market as the Fed recently talked off increasing tapering measures to fight rising inflation. This could see the USD weaken slightly as they look for ways to slow down inflation.
We also have NFP this week which is forecast to be weaker however still a strong number above 500k jobs.
Chart To Watch: EURUSD
The EURUSD price could be one to watch going into this week as the USD Index finds resistance. If we do see some short-term bullishness from the market we could look for the price to reach the previous weekly lows at 1.1500. The weekly candlestick shows a bullish reversal and if the price breaks the highs we could look for long opportunities.
The 4hr time frame is showing a sign of a change in trend which occurs when the price enters a reversal pattern. If the price makes a higher high above the weekly highs of 1.1334 we can look for long opportunities with the trend on this time frame.