Source: PaxForex Premium Analytics Portal, Fundamental Insight
The final US Michigan Consumer Sentiment for November came in at 60.4. Forex traders can compare this to US Michigan Consumer Confidence for October, reported at 63.8. The final Current Conditions for November came in at 65.7, and Final Expectations at 56.9. Forex traders can compare this to Current Conditions for October, reported at 70.6, and Expectations at 59.3. Final US Michigan Inflation Expectations for November came in at 4.4%, and Final US Michigan 5-Year Inflation Expectations at 3.2%. Economists predicted a reading of 4.4% and 3.2%. Forex traders can compare this to Final US Michigan Inflation Expectations for October, reported at 4.2%, and Final US Michigan 5-year Inflation Expectations at 3.0%.
The US IBD/TIPP Economic Optimism Index for November is predicted at 40.2. Forex traders can compare this to the US IBD/TIPP Economic Optimism Index for October, reported at 36.3.
The US Monthly Budget Statement for October is predicted at -$30.0B. Forex traders can compare this to the US Monthly Budget Statement for September, reported at -$171.0B.
The start to this trading week features a light economic calendar, but Friday’s hawkish comments by US Federal Reserve Chief Powell and Moody’s Investors Service US debt downgrade over the weekend could provide bears a platform to force a correction in US equity markets following a massive rally based on hope. Adding to downside pressure is a US consumer drowning in debt, which could result in weak retail sales, while inflation expectations among consumers have increased.
The forecast for the NASDAQ100 turned cautiously bearish after this equity index rallied into its horizontal resistance area amid expectations of a dovish US central bank. Friday’s hawkish comments by US Federal Reserve Chief Powell poured cold water on those hopes. The breakout above ots descending Ichimoku Kinko Hyo Cloud with the Senkou Span A and the Senkou Span contracting could reverse this week. Volatility may rise to start the new trading week, with the Kijun-sen and the Tenkan-sen moving higher. Traders should also monitor the CCI in extreme overbought territory, where a negative divergence formed. Should this technical indicator break down below 100 and push into negative territory, a more massive sell-off may follow. Can bears overpower bulls and regain control over the NASDAQ100 to pressure this equity index into its horizontal support area and a year-end sell-off? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the NASDAQ100 Index remain inside the or breakdown below the 15,440 to 15,550 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 15.475
- Take Profit Zone: 14.450 – 14.690
- Stop Loss Level: 15.630
Should price action for the NASDAQ100 Index breakout above 15,550, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 15.630
- Take Profit Zone: 15.815 – 15.935
- Stop Loss Level: 15.550
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