Daily Technical Analysis on 15th November 2016
Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY, & XAUUSD.
The euro little bit retreated from 11month lows among blended Euro-zone data staying in the red in the focus of Donald Tramp victory. The euro gap lows at the open when prices moved from 1.0850 levels - 1.0830 levels on yesterday. The euro did not fill the space and sustained moving downside, trading in a short-term descending channel. The pair met a barrier around 1.0800 levels which slowed down its downside trajectory during the Asian time. Following a brief consolidation phase the pair handled to crack the level and extended its losses towards 1.0750 levels. Sellers tested the level & set a daily low at 1.0727 levels post-European session open. After testing 1.0750 levels the common currency temporally rolled back over the broken level. Sellers smashed the level and drive prices lower in the US session.
The prices are well below the moving averages in the 4HR chart. The moving averages direct downwards. The resistance finds in 1.0750 levels, the support comes in 1.0700 levels. Overall the EURUSD is oversold & holds within the negative zone. The MACD histogram decreased which hints the sellers growing strength. RSI indicator is close to the overvalued region, favoring a fresh move lower. A break under the level of 1.0700 will trigger the upcoming leg of moving for the pair. In this picture, sellers will force the prices lower and might test the level of 1.0650.
There were no major economic releases in the UK on yesterday. Risk-off sentiment made risky retreat keeping the pound into new lows. The poor Chinese Industrial Production & Retail Sales weighed on the British pound as well. The pound gap lows at the open on last day. Prices cut down from 1.2594 levels - 1.2564 levels and almost filled the space in the mid-Asian hours. The market touched the mark level of 1.2591 where a fresh wave of selling interest twisted them around. Sellers send the price lower and were adept to test the levels 1.2500 before European session opening. The pair breaks the level, recorded a daily low at 1.2450 levels and quickly rolled back.
The neutral 200-EMAs blocked the seller’s downward impetus. The 50-EMA is crossing the 100-EMAs upward direction. Both lines keep moving higher. The resistance seen at 1.2600 levels, the support appears at 1.2500 levels. Technical indicators are now providing bearish signals. MACD decreased which hints the buyer’s positions weakening. Indicator RSI left the overbought zone and headed downwards.
The yen got under selling pressure following the BoJ Governor Haruhiko Kuroda's speech. Despite the positive GDP for third quarter domestic demand is very poor to promote the Japanese currency. A new buying pressure around the US dollar boosted the pair to fresh highs. The price stayed in an ascending channel, trading around its upper edge. Buyers were adept to test the level of 108.00 where prices remained the end of the European hours. Buyers cracked the level and widened their gains in the US session.
The pair is well above the moving averages in the 4HR chart. The 50, 100 and 200 EMAs increased their growth. All lines are directing higher. The resistance remains in 108.50 levels, the support stays in 108.00 levels. Technical indicators keep moving north within the positive region. The histogram grew which signs a buy signal. RSI oscillator is consolidating within the positive zone. The dollar needs to crack the 108.00 levels to retain bullishness for additional gain to 108.50 levels. Sellers will do their best to come back into the game.
The yellow metal prices remained below the pressure trading around five months low being under pressure as US election results constantly weighing on market sentiment. Most of the investors consider that the Fed will hike the rate this December that weighed on the market sentiment as well. The metal prices bounced off the border of the oversold region on yesterday. Sellers lost to extend decreases below 1210 levels and buyers took a chance to reverse few losses. The metal broke the 1220 levels and almost touched 1230 levels where the buying momentum lost its stage. The price faced another downward pressure and comes under 1220 levels. Traders tested the levels 1210 at the starting of the US session.
Prices traded under the 50, 100 and 200 EMAs in the 4HR chart. The moving averages are heading south. The resistance stands at 1220 levels, the support finds at 1210 levels. MACD is in the negative zone. RSI indicator is close to the overvalued region, favoring a fresh move lower. If risk-on sentiment stays intact the yellow metal prices will weaken further. A firm smash under the level of 1220 manage would unlock the door for testing the levels of 1210 & 1200.