Daily Forex Technical Analysis on 17th November 2016
Today's Technical Pairs: EURUSD, GBPUSD, USDJPY & XAUUSD
The euro softened on the rear of solid dollar & lack of drivers from the Euro-zone. However, investors keep pricing in the Fed possibility to hike rates next month. The pair lost to hold to gains & turned negative after the market opening on yesterday. The euro sustained to grind lower & tested 1.0700 levels at the UK session open. The value reached the 50-EMAs and bounced downside in the 1HR chart. All moving averages constant moving lower.
The resistance finds in 1.0750 levels, the support comes in 1.0700 levels. Technical indicators maintained bearish signals. Indicator MACD stayed in the negative zone. The RSI oscillator consolidated within the negative area. We consider the euro will handle its bearish momentum in the near-term. The 1.0700 level is likely to be cracked soon and the level 1.0650 occurs to be the next intraday support levels & possibly a bearish target.
The pound weakened on the rear of the blended unemployment data. Unemployment rate cut down indicating at labor market possible slow down. As for the technical scenario the pair held a bullish tone throughout the Asian & European session on yesterday. The pound was hovering over 1.2400 levels attempt to extend its recovery. The 1.2500 levels appeared to be a solid barrier on its path upwards. After testing the level values rolled back and touched 1.2400 levels before the US session. The value kept struggling with the 200-EMA before the UK session opening. The line limited its additional gains in the 4HR chart. The moving average remains neutral in the 4HR chart.
The resistance seems at 1.2500 levels, the support appears at 1.2400 levels. Currently, technical indicator remains neutral. MACD indicator is at the centerline. If the histogram comes into the positive region, that will hints the buyer’s growing strength. If MACD comes back into the negative zone the sellers will take over the market control. RSI indicator was holding close to the overbought levels, favoring a move lower. Decline to hold above 1.2500 levels risks a slide to 1.2400 levels. After breaking 1.2400 levels the 1.2300 will return to the radar.
The pair continued with gains due to risk-on sentiment. Nikkei 225 touched the highest since February supporting the safe heaven yen. The US dollar is solid across the board among renewed hopes that the Fed will hike the rate this yearend. The pair trades in an upside channel. The US dollar was hovering close to the multi month highs against its Japanese counterpart on last day. The dollar mounted higher & touched the mark 109.50 levels in the mid-European session. The pair traded well over the moving averages in the 4 HR chart. The moving averages 50, 100 & 200 accelerated their growth.
The resistance will be seen at 110.00 levels, the support will be at 109.00 levels. The technical indicators maintained bullish signals. MACD stands at the same level which confirms the buyer’s strength. RSI consolidated within the positive zone. The value seems to be moving towards its quick resistance at 110.00 levels. Should this mark be touched successfully, an additional extension towards 110.50 levels might be observed further.
The improved market sentiment over Trump victory effect on the US economy weighed on gold prices on last day. The yellow metal prices remained around a fresh 1-month low on yesterday throughout the Asian session. The metal stayed under pressure among the bid sentiment around the dollar. The value traded between the 1250 & 1260 levels in the European hours. The pair made a fair break lower in the US session. Sellers broke a bunch of levels moving towards fresh monthly low. The pair closed the week around 1220 levels. The value continues developing under the moving averages. The moving averages are driving lower in the 4HR chart.
The resistance comes at 1220 levels, the support finds at 1230 levels. Technical indicators maintain bearish signals. Indicator MACD stayed at the same level which confirms the buyer’s strength. RSI indicator sustained consolidating within the oversold levels. The metal is anticipated to recover in the short term. Gold will strengthen as soon, as the value rises over the resistance level of 1240. If buyers comes back they might lead prices to 1260 levels.