In the week ahead, the global financial market will shift their focus to Thursday’s U.S Federal Reserve Rate Decision. As well as U.S President Donald Trump meets with his Chinese counterpart Xi Jinping on the sidelines of the G20 conference in Buenos Aires next Friday. Before we continue, let’s take a quick look at the U.S dollar index…
U.S dollar index consolidates with Upside bias!
As long as 97.00 resistance holds on a daily closing basis, the U.S dollar index remains in a pullback mode and further down could be seen. Support comes at 95.95/95.45 level where rebound is very likely. Below that level will turn outlook bearish to 94.58 ahead of 93.85 level.
On the upside, immediate resistance comes at 97.00 level. A break will restore the upside momentum and pave the way to 97.50/98.05 level. It may test 97.50 before attempts breaking above 98.05 level. However; above 98.05 aims 98.75 level, further upside, resistance comes at 99.55 level.
Conclusion: The U.S dollar index sees upside move above 95.45/95.95 level in the medium-term forecast.
Let’s take a quick look at the most important events that are likely to affect the market this week:
Tuesday, November 27
The U.S will publish a report on consumer confidence.
Wednesday, November 28
The U.S will publish revised data on third-quarter growth and a report on new home sales.
Fed Chairman Jerome Powell will speak in New York.
Thursday, November 29
Germany will release preliminary inflation data.
ECB president Mario Draghi will speak at an event in Frankfurt.
The UK will report on net lending, while the BoE will deliver its analysis of Brexit to the Treasury select committee.
The Fed will publish the minutes of its November meeting.
Friday, November 30
U.S President Donald Trump and his Chinese counterpart Xi Jinping are due to meet on the sidelines of the G20 conference in Buenos Aires.
The eurozone will release preliminary inflation data.
Canada will report on GDP growth and raw material price inflation.
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