DAILY TECHNICAL ANALYSIS FOR NOVEMBER 17, 2021petar skakalov
Current level – 1.1319
The dollar continues to appreciate against the common European currency as it violated yet another support level – the one of 1.1365. The sentiment is strictly negative and the expectations are for the pair to test and breach the local bottom at 1.1310, which would pave the way towards the next support at 1.1260. After the sharp decline, it is possible that we could witness a corrective move, which would be limited below the resistance level of 1.1435. The data on the building permits for the U.S., which is to be announced today at 13:30 GMT, is expected to cause a spike in volatility.
Current level – 114.89
During yesterday’s trading session, two consecutive breaches of the support levels of 114.23 and 114.42 ended the range phase for the Ninja and paved the way towards the resistance zone of around 115.50. In the negative direction, the mentioned level of 114.42 is now acting as a support, and the former lower border of the range at 113.40, in which the pair was previously trading, is the major support for the pair.
Current level – 1.3425
Following the sharp decline, the Cable entered a consolidation phase and is trading in the narrow range between 1.3359 and 1.3439. Only a confirmed breach of either of the borders of the range would set the future direction for the pair. However, considering the strong performance of the dollar against most of the other currencies, the most likely scenario is for the Cable to violate the lower border of the range and move towards 1.3290.
Gold price under the negative pressure
Gold price ended yesterday with clear negativity to settle below 1860.00, but we notice that stochastic gained positive momentum that we expect to motivate the price to rise again, while the EMA50 keeps supporting the price from below.
Therefore, we expect to witness positive trades in the upcoming sessions, and the price needs to step above 1860.00 to confirm the continuation of the rise towards 1900.00 as a next main target, taking into consideration that failing to breach 1860.00 will put the price under additional negative pressure to visit 1835.00 followed by 1825.15 areas before any new positive attempt.
The expected trading range for today is between 1840.00 support and 1880.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis