Critical Forex Updates for Friday, November 5th, 2021

Dollar gains continue to stay the course. The pound is the laggard on the day with cable sliding by 0.5% to 1.3430.

The same goes for the other dollar pairs in the forex market, with EUR/USD now easing towards a test of its October lows of 1.1525-29. The low today is touching 1.1535. The dollar is moderately higher overnight, with the DXY index rising by 0.3%.

Oil prices fell fast on a “sell the fact” play amid the OPEC+ decision, with WTI dipping back below $80. Prices appear to have stabilized a little. But we think they could falter again unless buyers push us back above $80.

The daily chart shows that it is a pretty straightforward case of the pair at a very critical level at the 200-day moving average with the Fed-RBA divergence still part of the picture for now, leading to a test of its 100-day moving average @ 0.7378. If that breaks, its trouble for AUD.


US non-farm payrolls in focus today
With all the focus on central banks over the last few days, one can easily ignore that we still have one of the bigger data points that the Fed and the market tends to look at.
Be mindful that dollar bulls could stretch gains if they start to take a run at key levels on the charts. That is something to watch for in the run up and after the non-farm payrolls release, if we do get an upbeat report.

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