Late-Week News, EUR/USD Levels
All in all, it has been an active five days on the markets, featuring plenty of economic events and breaking news items. For the late-Friday U.S. session, there are still a few issues worth addressing. On the forex, the EUR/USD is trending the bear and threatening to extend three-day losses. For energy traders, the Baker-Hughes Rig Count has been released. Factor in an impeachment Twitter rant from President Trump, and it has been a fairly active end of week session.
Breaking News: Baker-Hughes Reports Drop In Rig Count
It has been a big week for WTI crude oil, with prices making a legitimate charge at $60.00 per barrel. So, will the bump in pricing be enough to fire up North American production? For at least another week, the answer is a resounding no.
At 1:00 PM EST, the Baker-Hughes Rig Count was released to the public. For oil rigs, the report showed 671 operational drillers, down from 674 one week ago. Last year at this time, the count measured more than 880 rigs. To say the very least, North American shale drillers have cut back operations dramatically.
However, the news from Baker-Hughes hasn’t done a whole lot to draw bids to January WTI futures. Prices are hanging in negative territory, with the markets seeing some moderate profit-taking from mid-week long position holders ahead of the bell.
EUR/USD Slamming Through Daily Support
News from the eurozone during the U.S. overnight has driven the action in the EUR/USD. In addition, some early-session optimism toward “Phase 1” of the U.S./China trade deal has further spiked participation. Subsequently, since about 10:00 AM EST, the Greenback has posted solid gains vs the euro.
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Going into the Monday session, there are two levels worth watching in the EUR/USD:
- Resistance(1): Daily SMA, 1.1047
- Support(1): 62% October’s Range, 1.0993
Bottom Line: The past three days have been tough on EUR/USD bulls. Rates have fallen by more than 50 pips and are in a position to extend losses. Barring any blockbuster news items, it looks like another test of the 62% Fibonacci support level at 1.0993 is imminent.
Until elected, I will have buy orders queued up from 1.0999. With an initial stop 1.0974, this trade produces 25 pips on a standard 1:1 risk vs reward ratio.
Next week marks the observance of the Thanksgiving holiday in the United States. American liquidity providers will begin exiting the office on Wednesday afternoon and are likely to remain gone until Monday, 2 December. Be ready for some early-week fireworks ahead of the break and stay tuned to FX Leaders for details on how to get in on the action.
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