FX.co ★ 27.11.2020:US traders unlikely to change financial market sentiment. Outlook for EUR/USD and GBP/USD

Despite the fact that today is a working day in the US, the market remains stagnant. Notably, the working day is shortened. Moreover, the economic calendar is almost empty. That is why the quotes are likely to continue hovering at the same levels.

It seems that investors have decided to take a break until next week that will be richer in macroeconomic events than the current one. Thus, the US Labor Department will report on employment and the eurozone will publish extremely important macroeconomic data, including inflation, unemployment rate, and retail sales. We will take a close look at these events in our video calendar that will be revealed later today.

At the moment, investors are thinking over the loosening of some restrictive measures in a number of European countries. Notably, Germany extended its partial lockdown.

Meanwhile, the Brexit negotiations are still in progress. In a closed-door meeting for national diplomats in Brussels, the EU's chief negotiator Michel Barnier explained that he was not able to say yet whether a new UK trade deal would be ready in time. He also said that he would travel to London to try to break the logjam over the most contentious issues.

On the trading chart, we can see that the euro/dollar pair is hovering near the level of 1.1900. It means that there is still a chance for a further rise. Notably, in this month, the euro has gained over 300 pips. The quote is trading within the upper limit of the 17-week sideways channel. Thus, 1.2000 is the key level for buyers. If the price consolidates above 1.1950, it may advance to 1.2000. However, traders should be cautious as the price may reverse. According to the alternative scenario, the pair may start fluctuating between the levels of 1.1890 and 1.1940.

At the same time, the pound/dollar pair is still trading within the range of 1.3300/1.3400. Traders are recommended to remain focused on the levels of 1.3300 and 1.3400. It is possible to open a position after a rebound or a break of either limit.

Traders should remember that a long hovering within a sideways channel may attract speculators. This, in turn, could result in a surge of activity at the moment of leaving the range.

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