Markets interrupted their record-setting streak this week on concerns about rising prices after retail inflation hit a 30-year high. On Friday, the University of Michigans Consumer Sentiment Index dropped to a preliminary reading of 66.8 for the month of November, its lowest level since 2011, with one in four Americans surveyed claiming inflation has negatively impacted their living standards.
Following an extremely volatile week in the markets, traders await the next steps of the USD and stocks. No one knows What drivers will move the assets next week until we find out
First let's looks at the Trades Idea
Forex
The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies.
The main complicating aspect of this week is connected with the further performance of the US dollar. The USD strengthened last week on the Consumer Price Index report. Analysts and experts are concerned much about inflation as looks like that unexpected and unwanted houseguest who just wont leave. The US dollar index has gain the key ascending resistance line and some changes is expected at the beginning of this week. EUR/USD has reached March 2020 level, which is a highest support. Some reversal is expected in this currency pair with the target at 1.1540. Also, pay attention to GBP/USD, the pair might reach 1.3530. Monetary Policy Meeting Minutes will shake the Australian dollar on Tuesday. AUD/USD might brings out of the 0.7270 support level and head towards 0.7395 after the research as the outcome.
Stocks
Also known as equities, represent fractional ownership in a company consists of exchanges where investors can buy and sell individual shares of the business. Those who puts their money will continue checking the performance of indices. Last week NASDAQ (US100) has reached the upper border of the rising channel it has been moving into for 16 months. As usual, the price got rejected out of it. But as of this week US100 might slide further and reach the key support level of 15700. US500 has also reached, the global ascending resistance line and got rejected. The key support locates at the 4550 level where the price will head on this week differently.
Oil & metals
As The oil prices continues moving in a range between $80 and $84.5 last week. The next week will be not less volatile for XBR/USD. If the price breaks through the main support of $80, it might fall to $77. The price of XTI/USD follows a similar scenario. After reaching $83.25, it reversed and fell to $79. If this resistance level gets broken, the price will plunge to $75 support. XNG/USD dropped hard last week. It reached $4.8 support and bounced back. During this week the price will be fluctuating in the $5.3 and $4.8 range. Breakout of either side will define the future trend. Gold broke through the key descending resistance line and heads towards $1900. Before that, it might retest the $1830 key level from the above.
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