Today traders should be focusing on the economic calendar. We have already seen better French Q3 GDP results but the forward looking German ZEW Economic Sentiment will likely attract much of the attention in today’s European trading session.
In the North American trading session US retail sales and the Empire State Manufacturing survey could support the theory of a US economy that is beginning to grow. This would likely be a positive for higher yielding currencies such as the AUD and the SEK and could reverse the negative market sentiment that was seen in yesterday’s forex trading.
Early this morning the AUD/USD failed to break below 1.0150, a level that is suspected to contain a large amount of stop-loss orders. A break here would likely send the pair lower with support at last week’s low of 1.0050. A lift in the AUD/USD could see resistance at 1.0350 from the top of the early November consolidation pattern.
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By Russell Glaser
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.