Forex news for North American trading on November 16, 2021

The USD continued its run to the upside. The USD was the second strongest of the major currencies (behind the GBP today). The weakest of the majors was the NZD.

Forex news for North American trading on November 16, 2021_

The dollar index (DXY) reached a new high level going back to July 2020. The index is up four the last five trading days on it's way to a new high for the year at 95.978. The next major target comes in at 96.094 which is the 50% retracement of the move down from the March 2020 high

With the DXY reaching new highs, so too did the EURUSD. That pair traded to its lowest level since July 13, 2020, and in the process tested a lower trendline on the daily chart at 1.1311. The low for the day reach 1.1308 and currently trades at 1.1317. The 61.8% retracement of the move up from the March 2020 low comes in at 1.12876. That level would be the next target on further downside momentum

For the USDJPY, it traded to a new 2021 high taking out the previous high of 114.691. The price also traded above the November 2017 high at 114.728 taking the pair to the highest level since the week of March 12, 2017. The price is currently trading at 114.78 just above the November 2017 high. The March 2017 high comes in at 115.50. On further momentum that would be the next major target.

The GBPUSD is closing higher on the day as focus for GBP traders was on the better than expected jobs report which keeps a potential BOE hike in December a possibility. Nevertheless, the spike in the London session did stall ahead of its falling 200 hour moving average currently at 1.34648 (it would take a move above to increase the bullish bias). That led to a rotation back down toward its 100 hour moving average at 1.3410 where buyers leaned against the support. So although the dollar moved higher, the GBP was even stronger today.

The USDCHF rose for the fifth consecutive day (up 211 pips in those five days). In the process the price tested the October told high at 0.93117 and stalled. The price is currently trading at 0.9300.

The USDCAD is trading back above its 100 day moving average at 1.25435. Recall from last week, the price moved above that level on Thursday, and held support against the moving average level on Friday, but fell back below during yesterday's trade. The move back above the moving average tilts the technical bias back to the upside once again.

The AUDUSD moved higher in the early Asian session but found resistance sellers against its 200 hour moving average at 0.7368 (at the time). In the New York session, the price fell below the 100 hour moving average at 0.73223, and stay below that level. The wander to the downside took the price to the next target area between 0.7287 and 0.72908. That is just above the November low of 0.72763. The current price is trading at 0.7301 after holding support against that swing area.

In other markets today:

  • The S&P closed just below another new record high. The S&P index rose 18.1 points or 0.39% to 4700.91. That was just below the record all-time high close level at 4701.69 .
  • The NASDAQ index was the best performer with a gain of 120.02 points or 0.76% at 15973.87. The index is around 0.3% from its all-time record high close
  • Dow industrial average closed up 54.77 points or 0.15% at 36142.23. Intraday, the high change reached 229.16 points.
  • The US debt market, yields traded above and below unchanged, but is trading mostly higher going into the close with a steeper yield curve.
US yields are higher
  • Bitcoin fell sharply today and is trading just above the 60,000 level at $60,437. I guess it wasn't hedge against inflation today (down $3000)
  • Gold is trading down $12.57 or -0.67% at $1850
  • Crude oil is trading at $80.65 down $0.26 or -0.32%

Fundamentally today retail sales and industrial production/capacity utilization all came out stronger than expected. Retail sales been up for three consecutive months as consumers are flush with cash/wealth from a rising stock and housing markets. There may have also been a boost from early Christmas buying as consumers worry about supply chain issues into the holiday.