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Return Of Risk Aversion Or Bull Rally?

Published 28/11/2022, 08:51
Updated 14/05/2017, 11:45

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.

Our trading ideas for today 28/11/22:
EUR/USD
Long @ 1.0390
Short @ 1.0340

GBP/USD
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.

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