Last week, Pfizer officially asked the FDA to clear its Covid-19 vaccine for emergency use. The FDA is expected to take about three weeks to issue a conclusion. Moderna, which reported a 94.5% effective vaccine, will be next to file an application.
During the weekend the G20 meetings held in UAE whereas leaders of the 20 biggest economies on Saturday vowed to ensure a fair distribution of COVID-19 vaccines, drugs and tests around the world and do what was needed to help poorer countries struggling to recover from the Covid-19 pandemic.
The waiting game for the UK-EU trade deal goes on. With the progress being slow and the negotiations to extend into early December, this suggests limited moves for the pound gains next week.
In Europe, Monday’s PMI will be in focus. As we saw only a small drop in the last month for most economic indicators, analysts expect a significant drop in the composite estimate, driven by a drop in services due to fresh pandemic lockdown measures.
In the US data calendar, traders will be watching the PMIs on Monday and a set of releases on Wednesday, with most notable the quarterly Preliminary GDP. Also on Wednesday night, the FOMC Minutes will be released, with any possible surprises coming from clues at a QE expansion in December.
On Thursday, US banks will be closed in observance of the Thanksgiving Day Holiday and traders are expecting low Forex volatility for all USD pairs.
The week ahead will end with the Black Friday, with the hope of positive signs from consumer spending, even within a lockdown.
On Monday, Japanese banks will be closed in observance of Labor Thanksgiving Day.
EUR/USD
Last week, the euro tried to shoot towards the 1.1975 level, where is an area with a strong resistance. In the longer term it seems that the Euro will be stuck on the 1.16 and 1.20 levels on a sideways range.
The next week will probably see some losses. Nevertheless, if the market breaks above the 1.20 level, then we can see the pair rallying to the 1.23 handle.
FORECAST: LONG
Resistance: 1.1875, 1.1900, 1.1950
Support: 1.1825, 1.1750, 1.1700
AUD/USD
The Aussie spent most of last week trying to test upwards but continues to struggle with the 0.7350 level with signs of fatigue. The pair will continue to try to break out, with a pullback being an opportunity to buy.
If the pair breaks above the 0.7350 level on a daily close, the market will then test the 0.75 handle.
FORECAST: LONG
Resistance: 0.7325, 0.7350, 0.7400
Support: 0.7275, 0.7225, 0.7150
GBP/USD
Last week, the British pound pushed upwards, testing the 1.3300 level. Uncertainty concerning the Brexit deal will cast a doubt on the pound but nevertheless, as the case with the Aussie, buying the dips should be the strategy this week. GBP/USD could be on the verge of a big bull run.
FORECAST: LONG
Resistance: 1.3300, 1.3350, 1.3400
Support: 1.3250, 1.3200, 1.3150
GOLD (XAU/USD)
The long-term trend of the yellow metal remains bearish as the optimism of an effective Covid-19 vaccine is rising. Pharma companies coming out with positive test results are pressuring Gold as the worlds risk asset.
The pair has tested the support level of $1,850 two times this month, and it is trading below the two EMAs as an indication that the bears are prevailing.
FORECAST: SHORT
Resistance: 1875, 1900, 1950
Support: 1850, 1825, 1800
USD/JPY
During last week, the dollar bulls tried to push upwards but found the 105 to be a strong resistance price. Eventually, the market pulled back and consolidated to just under the 104 price level.
The USD/JPY is expected to continue the push downwards, as the dollar is pressured by the Fed and the pandemic record cases.
FORECAST: SHORT
Resistance: 104.25, 104.50, 105.00
Support: 103.75, 103.50, 103.00
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.