- The dollar index reversed down and inched lower as FED Chair Yellen officially submitted her resignation from the central bank’s Board of Governors.
- We will get some important U.S. macro data including durable orders for October at 2130 BJT today and FOMC policy meeting minutes at 0300 BJT Thursday.
The dollar inched lower against a basket of six majors after hitting resistance at circa H4-period EMA30 again on 21 November Tuesday. Federal Reserve Chair Janet Yellen has announced her resignation from the Federal Reserve’s Board of Governors. Yellen’s departure from the Fed long before her term as a governor ends in 2024 indicated a slightly more hawkish FOMC. Markets’ attention will turn to U.S. October durable orders at 2130 BJT today and FOMC policy meeting minutes at 0300 BJT Thursday with the comments on U.S. inflation playing the major role of the expectations over rates hike in December.
The dollar index (DXY) saw its short term moving averages turned convergent again after the strong pierce into its long term moving averages which remained bearish and divergent while seemed to flatten encountered some resistance on the 4 hour chart. Watch the moving direction of the short term moving averages when and if they turn divergent again.
（DXY H4 chart）
As to non-U.S. currencies, the euro rallied with limited upside momentum, although supported by the dual-support on the 4 hour and daily chart. Watch the downside support at 1.17125—1.17064 area. The British pound consolidated and showed a Symmetrical Triangle pattern in the short term, waiting for the breakouts. The Aussie dollar rallied to test H4-period trend resistance. Given that the commodity currency failed to shape a short-term bullish breakout in one go, it will be interesting to watch the direction after a corrective decline/consolidation.
（AUDUSD H4 chart）
Take a look at precious metals now. The gold staged a swift rally in New York though still whipsawed around H1-period EMA60. Capped by its long term moving averages, its short term moving averages failed to continue its rising in the stage of divergence. After convergence in the short term moving averages, watch for a descending for a new low in the price action of the gold from Monday while a bullish breakout for a moving back to last Friday’s highs.
（Gold H1 chart）
By JasonZou —— Chief Analyst of AvaTrade China
Disclaimer: The views and opinions expressed in this article are those of the authors and for the purpose of reference only, and shall not be relied upon by investors in making any trading decisions.