As we head into Tuesday, November 26, 2024, global markets are poised for significant activity, with traders focused on key economic data releases and central bank communications. The U.S. dollar maintains its position of strength amid robust housing and consumer confidence data, while the New Zealand and Canadian dollars remain in the spotlight due to GDP and retail sales figures.
In the forex markets, the EUR/USD pair showed increased volatility, pressured by mixed economic signals from the Eurozone and the U.S. Similarly, the USD/CAD pair witnessed sharp movements driven by oil price dynamics and Canadian GDP expectations. The NZD/USD pair reflected subdued momentum as markets prepared for the Reserve Bank of New Zealand’s policy statement.
EUR/USD
Technicals in Focus
The EUR/USD pair faced heavy selling pressure, closing near the 1.0480 level after an attempt to recover earlier in the session. Weak Eurozone economic sentiment and a resilient U.S. dollar weighed on the pair. Technically, the MACD is below the zero line, signaling bearish momentum, while the Stochastic Oscillator is in oversold territory, suggesting the potential for a short-term rebound. The 14-day RSI remains subdued, reflecting bearish sentiment.
Trading Strategy: Neutral to Sell
- Sell below 1.0480 with targets at 1.0450 and 1.0420, with a stop loss above 1.0510.
- Alternatively, consider long positions above 1.0510 with targets at 1.0540 and 1.0565, with stops below 1.0480.
USD/CAD
Technicals in Focus
The USD/CAD pair climbed to 1.3990 amid rising U.S. dollar demand and mixed signals from Canadian GDP data. Technical indicators highlight bullish momentum, with the MACD above the zero line and histograms widening. However, the Stochastic Oscillator is nearing overbought territory, suggesting limited upside potential. The 14-day RSI remains neutral.
Trading Strategy: Neutral to Buy
- Buy above 1.3990 with targets at 1.4020 and 1.4050, with a stop loss below 1.3950.
- Alternatively, consider selling below 1.3950 with targets at 1.3920 and 1.3880, with stops above 1.3990.
NZD/USD
Technicals in Focus
The NZD/USD pair traded near 0.5830, pressured by weak retail sales data and cautious sentiment ahead of the RBNZ rate decision. The MACD remains bearish, while the Stochastic Oscillator is hovering near oversold levels, indicating a potential rebound. The 14-day RSI shows limited directional bias, reflecting a consolidation phase.
Trading Strategy: Neutral to Sell
- Sell below 0.5830 with targets at 0.5800 and 0.5770, with a stop loss above 0.5860.
- Alternatively, consider long positions above 0.5860 with targets at 0.5890 and 0.5920, with stops below 0.5830.
Market Outlook
Looking ahead, U.S. consumer confidence data and home sales figures will be closely monitored for further insights into the strength of the U.S. economy. In New Zealand, the Reserve Bank’s monetary policy decision is expected to provide clarity on the outlook for the Kiwi dollar. Canadian GDP data will also be a critical factor influencing USD/CAD movements.
Overall, the markets are likely to remain sensitive to economic data and central bank updates, with volatility expected to persist as traders digest key developments.