As we head into Tuesday, November 12, 2024, global markets are positioned for a session that could see heightened volatility, driven by a series of significant economic data releases. The U.S. dollar remains in focus as traders react to recent data and prepare for upcoming releases, particularly on employment figures and inflation data from key economies.
In the currency markets, the GBP/USD pair showed a downward trend, influenced by weaker-than-expected UK data and positioning ahead of key employment statistics. Meanwhile, the EUR/USD pair has experienced a consistent sell-off, reflecting economic concerns in the Eurozone and expectations of further monetary policy adjustments. The USD/JPY pair, on the other hand, exhibited an upward trend, benefiting from stronger USD sentiment amidst global risk factors.
GBP/USD
Technicals in Focus
The GBP/USD pair continued its downward momentum, closing near the 1.2870 level after experiencing sustained selling pressure. The move was influenced by weaker UK economic indicators, with the market showing caution ahead of the UK employment and GDP data releases. On the technical front, the MACD indicator shows strengthening bearish momentum, while the Stochastic Oscillator indicates an oversold condition, suggesting the potential for a corrective bounce. The 14-day RSI is also in bearish territory, underscoring the current selling bias in the pair.
Trading Strategy: Neutral to Sell
Sell below 1.2870-1.2850 with targets at 1.2830-1.2800 and 1.2770-1.2750, with a stop loss above 1.2900. Alternatively, consider long positions above 1.2900 with targets of 1.2930-1.2960, with stops below 1.2850.
USD/JPY
Technicals in Focus
The USD/JPY pair maintained an upward trajectory, closing near the 153.80 level. This movement was largely driven by a strong U.S. dollar as traders anticipate more robust U.S. economic data and rising bond yields, which support demand for the USD. The MACD shows increasing bullish momentum, while the Stochastic Oscillator is approaching overbought levels, signaling caution for potential exhaustion. The 14-day RSI remains in bullish territory, indicating continued upward bias.
Trading Strategy: Neutral to Buy
Buy above 153.80-153.50 with targets at 154.10-154.40 and 154.70-155.00, with a stop loss below 153.20. Alternatively, consider short positions below 153.20 with targets of 152.90-152.60, with stops above 153.50.
EUR/USD
Technicals in Focus
The EUR/USD pair experienced significant selling pressure, closing near the 1.0650 level after a steady decline. The Euro continues to face headwinds due to weaker economic prospects and concerns over monetary policy direction in the Eurozone. Technically, the MACD is showing bearish momentum with a downward slope, indicating ongoing selling pressure. The Stochastic Oscillator is in the oversold region, suggesting a potential for a corrective bounce. The 14-day RSI is also trending lower, reinforcing the bearish outlook.
Trading Strategy: Neutral to Sell
Sell below 1.0650-1.0630 with targets at 1.0610-1.0580 and 1.0550-1.0520, with a stop loss above 1.0680. Alternatively, consider long positions above 1.0680 with targets of 1.0710-1.0740, with stops below 1.0630.
Market Outlook
Looking ahead, market participants will be closely watching the release of U.S. inflation data and jobless claims as they could provide crucial insights into the future direction of the U.S. dollar. Additionally, the market remains attentive to economic developments in the UK, where the latest employment data and GDP figures are expected to have a significant impact on the GBP/USD pair. For the Euro, traders are cautious as Eurozone industrial production data could further highlight the economic challenges facing the region.
Overall, the market is expected to remain sensitive to economic data and central bank communications, with potential for increased volatility as traders react to new information.