Except for the NZD rally, the rest of the foreign exchange market almost did not show any sign of life on early Tuesday, which should be considered a nice change after yesterday's fluctuations. The disclosure of the speech of the nominee to the new chairman of the Fed's Powell brought no surprises. The stock market is lightly defensive, nervous about the oil market ahead of the OPEC summit
On Tuesday 28th of November, the event calendar is light in important data releases, but the market participants will keep an eye on Bank Stress Test Results data from the UK, M3 Money Supply data from the Eurozone, Goods Trade Balance, CB Consumer Confidence and Richmond Fed Manufacturing Index data from the US. There are some speeches scheduled from the FOMC Members William Dudley, Jerome Powell, and Patrick T. Harker. Bank of Canada Governor Stephen Poloz will give a speech later as well.
EUR/USD analysis for 28/11/2017:
The calendar does not contain any significant macroeconomic data, the most important event will be the speech of Jerome Powell, the future Chairperson of Fed. The text of the speech is already known, but there is still a question and answer session afterward. The most anticipated data release from the US is CB Consumer Confidence Index data (a monthly survey of about 5,000 US households regarding their opinion of the economy), which is expected to decrease slightly from 125.9 to 123.9 points. Otherwise, the day will be dominated by the end of the month flows on the currency market.
Let's now take a look at the EUR/USD technical picture in the H4 time frame. The market reversed at the level of 1.1960 and currently is trading close to the technical support at the level of 1.1880. This is the key support level for the bulls and if violated, then the next important support is seen at the level of 1.1725. The overbought market conditions and a clear bearish divergence between the price and the momentum oscillator support the downward bias.
Market Snapshot: USD/JPY at the key support
The price of USD/JPY fell below the key support at the level of 111.06 but bounced quickly back towards the level of 111.45. The bounce might get extended as the oversold market conditions and bullish divergence support the temporary recovery bias.
Market Snapshot: Gold still in sideways zone
The price of Gold has made a new marginal local high at the level of $1,298 but quickly reversed back towards the black channel zone. The market remains in the consolidation mode since the late October and the key zone to the upside is the area between the levels of $1,298 - $1.305.
