Inflation is still luring while the U.S Dollar surges after stronger than expected economic data along with positive U.S earnings boosted Wall Street shares.

The positive sentiment did not carry through to the Asian session on Wednesday as the U.S Dollar rose to a new high against the Yen last seen in March 2017.

Stronger than expected month-over-month U.S retail sales helped the greenback but put inflation firmly back into the spotlight. This could see the U.S Fed accelerate the tapering of its asset purchase programme as the Bank of England contemplates an interest rate increase in December 2021.

Here is what’s expected this week:

The Wall Street 30 Technical Analysis

The Wall Street 30 (WS30) Index has broken out of its price channel and found support at our new 35896 support level of interest (pink line) as discussed in our previous WS30 note.

We might see the 35896-support tested again if economic data and fundamental factors drive equity prices lower over the coming days. If this support level breaks, then the bears could take control which could bring the 35517-support level into focus.

On the flip side, if the bulls take control, we could see prices trend higher over the current month from current price levels to the 36578-resistance level as a possible long term price target.

• The 50-day SMA (blue line) is trending sideways and currently acting as resistance to price on the 4H chart.

The Relative Strength Index (RSI) is at the midpoint and consolidates sideways as we wait on the direction.

Current State / Chart Source: Wall Street 4H Timeframe  - GT247 MT5 Trading Platform

Trading Term of the day:

Greenback

A greenback is a slang term for U.S. paper dollars that originated from the backs of the bills being printed in green ink. In the mid-1800s, the Continental Congress did not have taxing authority. The "greenback" was a negative term because they did not have secure financial backing authority and banks were reluctant to give customers the full value of the dollar. – Investopedia

Take note: The outlook and levels might change as this outlook is released during the current days (Wednesday the 17^th of November 2021) U.S Market open.

Sources – MetaTrader5, Reuters, Investing.com, Investopedia.

Sources – MetaTrader5, Reuters, Investing.com, Investopedia.

Barry Dumas | Market Analyst at GT247.com

Barry has 12 years of experience in the financial markets. He enjoys educating clients on trading / investing and providing punchy technical analysis on securities. He currently holds a Wealth Management qualification and is studying towards becoming a Chartered Market Technician® (CMT) designation holder.

Disclaimer:

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