LeTechs Forex Blog - Forex & Gold Technical Analysis on 3rd November 2016

03 Nov

Forex & Gold Technical Analysis on 3rd November 2016

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Daily Technical Analysis on 3rd November 2016

Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY & XAUUSD.

EURUSD

The dollar decline 3-week low among growing volatility over the US election. The mixed reports from Germany slowed down the additional euro growth. The common currency extended its short-term bullish momentum last day. The pair found a solid resistance at the level of 1.1100 which slowed down its further growth. The pair traded at a recent 3-week high, just under the level of 1.1100 during the European session.

The price broke the 200-EMA and trended north in the 4 hours chart. The 50, 100 and 200 EMAs are turning upwards in the 4HR chart. The resistance comes in at 1.1100, the support lies at 1.1050. The MACD histogram grew which hints the buyer’s growth. The RSI indicator sustains to consolidating within the overbought region. If the positive moment stays intact the euro’s next stop might be at the levels of 1.1100-1.1150 area.

GBPUSD

The pound strengthened on the rear of the positive Construction PMI in the UK on yesterday. Recent buying pressure around the Pound boosted the pair to fresh highs. Traders forced the sterling higher on yesterday. The pair was adept to escalate 1.2300 levels where the upward momentum faded for a while. The pound smashes the level before the US session opening.

The moving averages keep heading lower in the 4HR chart; still, the 50-EMA is becoming more neutral. The value bounced off the 50-EMA and moved towards 1.2300 levels, testing to move before the US session open. The resistance seen at 1.2400 levels, the support stands at 1.2300 levels. MACD has created a signal to rise. RSI is moving upwards which confirms the buyer’s strength.

USDJPY

The dollar yet under pressure on yesterday as election uncertainty weighed on the markets. The pair lost to regain the 105.00 level. The price encountered a solid seller’s resistance around the level which generates its sharp cut down. The pair remained in red candles on last day as the downside momentum prevailed. Sellers forced the value lower from 104.00 levels towards 103.00 levels. The USDJPY pair cracks 103.50 levels on its path to 103.00 levels.

The value broke the 100-EMAs and tested the 200-EMAs in the 4HR chart. The moving averages are twisting downside directions. The resistance finds in 103.50 levels, the support comes in 103.00 levels. Indicator MACD decreased which confirms the seller’s strength. The RSI indicator was holding close to the oversold region, favoring a fresh move lower.

XAUUSD

The volatility around US election returned its risk-aversion to the marker increasing demand for the safe-haven assets like gold. Gold prices widen their gains on yesterday, breaking out of the ascending channel patterns. The pair smashed the level of 1290 and approached the level of 1300 at the start of the US session. The upside momentum had run out of steam by the movement of the price threaten the level.

The moving averages are directing north. The value stayed well above the moving averages in the 4HR chart. The resistance will be at 1290 levels, the support stays at 1280 levels. The MACD histogram grew which hints the buyer’s growing strength. RSI oscillator is in the overbought region. A crack over the 1300 levels will strengthen buyer’s spot. In this potential outlook, the pair might reach 1310 levels.

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