Daily Technical Analysis on 9th November 2016
Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY, & XAUUSD.
The pair strengthened before the US elections. The pair rejected weak Industrial Production and Trade Balance in Germany. Markets froze, waiting for US election results. The weak daily closing on last day’s trades depressed the possibility for additional euro strength. The pair remained below in pressure, trading around weekly lows on yesterday. Traders tried to develop an upside movement post-European unlock after a brief consolidation in the Asian session. They tried to reclaim the 1.1050 level loss, the value just pierced the level and returned under its afterwards.
The 200-EMA which remains around the 1.1050 levels acted as a resistance in the 4HR chart, holding euro attempts to gain. The moving averages of 50, 100 and 200 stands neutral on the 4HR chart. The resistance seen at 1.1050 levels, the support finds at 1.1000 levels. MACD indicator is at the centerline. If the histogram moves to the negative zone that will indicate sellers growing power. If MACD comes back into the positive zone the buyers will take the market control. RSI remains neutral in position.
The pound showed blended trades on yesterday, growing on the rear of better-than-expected Manufacturing Production report the 1st part of the day and weakened among a stronger dollar end of the day. Technically, the sterling stays under pressure on last day, trading in a narrow range. Following an Asian flat the pair tried to rally. The value jumped from 1.2400 to 1.2436 where a bullish spike lost and the pound little bit rolled back. The pair got under selling pressure before the US session open and moved under 1.2400 levels.
In the 4HR chart showed that the value struggled with a neutral 200-EMA which limits its additional gains. A failure here drives the market downwards. The 50-EMA is crossing the 100-EMA in the 4HR chart, both are moving neutral. The resistance appears in 1.2400 levels, the support comes in 1.2300 levels. MACD decreased which hints the buyers’ spot weakening. Indicator RSI is consolidating within the positive region.
According to Taro Aso, Finance Minister of the BoJ will have to respond to any markets moves if the US elections results cause an abrupt yen strengthening. The pair traded in its Intra-week trading range the 1st part of yesterday. The market seemed quite balanced among lacks of market movers. Buyers consolidated their growth, holding the price in a tight range between 104.30 - 104.50 levels. The bulls moved rear on the renewed bids around 104.50 levels before the US session. After breaking the level values moved upsides, approaching 105.00 levels.
The price drives away from the 50, 100 and 200 EMAs in the 4HR chart. The resistance currently seems at 105.00 levels, the support remains at 104.50 levels. MACD remained at the same level which confirms the buyer’s growing strength. RSI oscillator remains close to the overbought region, supporting a move higher.
The yellow metal prices got below pressure on last day on anticipations of US election results. The market sentiment stays negative on yesterday. Sellers met a strong barrier around 1280 levels and were unable to move the price lower. After testing 1280 levels the value bounced off the level, hovering over it throughout the day.
A gold price stands around the 50 and 200 EMAs in the 4HR chart. Both lines present a solid resistance, holding its additional gains. The moving averages of 50, 100 and 200 remains neutral in the 4HR chart. The resistance stays at 1290 levels, the support stands at 1280 levels. Indicator MACD decreased which confirms the strength of sellers. The RSI indicator was holding close to the oversold levels throughout the day.