29.11.201809:33 Forex Analysis & Reviews: Trading plan for 29/11/2018

On Thursday, the 29th of November, the event of the day is FOMC Meeting Minutes release later during the evening, but before this will happen there are other important data scheduled for release from Germany (Unemployment Change and Unemployment Rate), France (GDP), UK (Net Lending) and Eurozone (Financial Stability Report).

SP500 analysis for 29/11/2018:

The President of the Federal Reserve had his speech yesterday evening. Although investors were waiting for the words of Jerome Powell, probably no one expected such a dovish tone of his speech. It can be concluded that the Fed may start the process of normalization of monetary policy next year. "Interest rates are still low by historical standards, but they are only slightly under the broad spectrum of neutral rate forecasts for the economy," said Powell. The head of the FED hardly mentioned the gradual rate hike, and when he did, he spoke in the past tense.

Moreover, he did not mention the drop in oil prices in his speech, but it is likely to affect inflation and, more importantly, lower inflation expectations. Thanks to this, the FED will have some time to check the impact of existing interest rates and verify the policy.

Let's now take a look at the SP500 technical picture at the H4 time frame. The reaction of the markets was unambiguous: stocks on Wall Street jumped up, SP500 ended the session with an increase of 2.30%. The SP500 has retraced 61% of the previous swing down and has hit the level of 2745. Currently, the market is consolidating the gains as the nearest support is seen at the level of 2707. On the other hand, in the case of a further move upward, the next target for bulls is seen at the level of 2766.