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DAILY TECHNICAL ANALYSIS FOR NOVEMBER 18, 2021

EUR/USD

Current level – 1.1319

Sell-offs for the pair slowed and were limited by the support zone at around 1.1292. The market seems to be oversold and the momentum is coming to an end. The EUR/USD is expected to enter a deeper and more complex correction. A new test is possible of the area between 1.1292 and 1.1263, from where prices are expected to rebound towards the resistance at 1.1365. If a deeper correction develops, the zone should be extended and the bulls would possibly be limited by the resistance at 1.1517. Around this resistance, a resumption of the downtrend, with a potential target of 1.1180, can be expected. Today, increased activity can be expected around the release of the weekly initial jobless claims data for the United States at 13:30 GMT.

USD/JPY

Current level –  114.89

The dollar lost most of the week’s gains after a wave of sell-offs around 114.92. The pair is thus again finding itself in the range between 113.41 and 114.41. Currently, the sentiment is rather neutral, with the bears prevailing if prices fall below 113.77. In such a scenario, a breach of 113.41 and a test of the support at around 112.75 can be expected. The bulls still have a chance to test the 114.92 resistance again, and a weekly close around this zone would significantly increase the odds of a new rally developing. Should sentiment shift to safe haven assets instead, there may be more declines coming for the Ninja.

GBP/USD

Current level – 1.3425

The sterling managed to breach the resistance at around 1.3439 and, in the early hours of today, the pair is gravitating around the resistance of 1.3500. A corrective phase of the market is currently under development, and expectations are for it to remain below 1.3600. A test of the 1.3440 support is possible, with the short-term expectations being for the zone to be confirmed and for the prices to bounce towards 1.3550. Investors estimate a potential rise in interest rates by the Bank of England on fresh rising inflation worries. If the sentiment persists, there could be a trend reversal from the current levels.

Gold price keeps its positive stability

Gold price settles above 1860.00 level, to keep the bullish trend scenario valid and active for the upcoming period, supported by the EMA50 that carries the price from below, waiting to head towards 1900.00 that represents our next main target.

Stochastic current negativity might cause sideways fluctuation before resuming the waited positive trades, noting that breaking 1860.00 and holding below it will press on the price to turn to decline on the intraday basis and achieve some bearish correction before turning back to rise again.

The expected trading range for today is between 1850.00 support and 1885.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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