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We weren’t expecting much in the way of market volatility this week due to it being thanksgiving but that didn’t stop the headlines. President Donald Trump signed a bill that backed Hong Kong protestor’s rights which angered China greatly. China said they would retaliate but no detail has emerged as of yet to what extent they will go to.
The EURO halted its losses later in the trading week as Unemployment fell significantly. Also, the latest CPI data released 0.3% higher for the year. This positive data could see the EURO start to climb against weaker currencies.
The USD index found resistance at the daily swing highs once again suggesting we could start to see USD weakness creep back into the market once again. Seasonally the USD index falls through December which adds confluence to the current technical analysis.
EURUSD found support from the key 1.1000 zone after a recent run of good data. This combined with the USD finding resistance we could expect to see the currency pairs price rise back towards the highs of 1.1080.
AUDUSD continued to move lower as expected this week. This sentiment is likely to remain if the US and China continue to disagree on further negotiations. We could see this currency pair back at the key 0.6700 support level.
USDJPY did break into new highs for a brief moment before reversing. With the price struggling to close above these highs we could see JPY strength re-enter the market.
GOLD bounced once again from the key demand zone after the USD dropped. This could be the start of a bullish phase we have been watching for a while. The price also shows the daily timeframe forming a lower low and the RSI forming a higher low highlighting bullish divergence.