Return Of Risk Aversion Or Bull Rally?

Welcome to a new trading week. Liquidity will return this week to the markets with traders eyeing the Federal Reserve’s favorite inflation index, the PCE deflator scheduled for release on Thursday and the ever-popular U.S. Nonfarm payrolls due on Friday.

Apart of the fundamental backdrop, the threat of rising social instability in China could prompt investors to shift toward safe haven assets such as the U.S. dollar. However, if current protests encourage China to accelerate its exit from Covid-Zero, it could be positive for markets over the medium-term.

EUR/USD: We will focus on a trading range between 1.0450 and 1.03. Above 1.0460 the next higher target is seen at 1.0590. Below 1.0290 however, we will pencil in a lower target at 1.0170.

GBP/USD: Given the prevailing short-term uptrend, we keep tabs on a higher target at 1.2250 that is considered the current resistance zone. However, the cable is due for a correction, which is why the 1.17-support will be of importance. A fall below 1.1650 could prompt bears to test the 1.1450-area.

By the way, for all interested German-speaking readers who want to learn more about the application of our strategies and generate profitable signals themselves on a daily basis, we recommend our latest strategy article in the Traders’ December issue. Available from November 26th at newsstands or online.


Our trading ideas for today 28/11/22:


Long @ 1.0390

Short @ 1.0340


Long @ 1.2090

Short @ 1.2060*

DAX® (GER40)

Long @ 14530

Short @ 14430

Settings for all trades today: Entries from 8:00 am UTC, SL 25, TP 40

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.

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