Daily Technical Analysis. Friday, November 10
The Euro is trading weak on Friday following the rise to a one-week high during yesterday’s session, having received a boost from lower dollar levels.
Despite the recent gains witnessed by the pair, prices still have to break and stabilize above the resistance levels at 1.1650 and 1.1670 in order to confirm the continuation of the uptrend. A drop below the near support at 1.1630 would affect the recent uptrend and cause the pair to proceed on a sideways trend.
Technical reading shows that the GBPUSD pair is trying to absorb the recent selling pressure. However, with no clear signals of change to the overall downtrend, if the pair manages to breach resistance levels at 1.3180, an allowance would be made for the market to correct higher and possibly advance to the the second resistance level at 1.3210. A break of the support level at 1.3130 would cause the market to remain bearish.
The US Dollar saw a decline against the currencies, including the Japanese Yen, after the US Senate postponed the draft Tax Law for a year. Adding to the demise of the Dollar is also the least than expected Data from the US Unemployment Reports yesterday.
Despite recent declines, the Dollar-Yen pair still has to break below the support level at 113.00 to confirm a continuation in decline. The breach of the resistance levels at 113.50 would affect the recent bearish trend and cause a sideways trend.
The USDCHF pair traded with remarkable negativity yesterday. Despite the sell-offs, prices would still have to break and hold below the support levels at 0.9920 to confirm the continuation of the decline.
Breaking the resistance levels at 0.9945 would affect the recent bearish trend and cause the pair to proceed on a sideways trend.
Gold rallied during the Asian session on Friday, after edging close to its highest level in three weeks yesterday. The recovery in the prices of the Yellow Metal is due to the decline in the Dollar levels and the rise in demand for safe haven.
A rebound in the price of Gold will help strengthen the bullishness of the market. The success of the price in breaching near resistance levels at 1288 will enhance optimism and push the price test to 1291 levels. However, a return of prices below support levels at 1284 would temporarily ease optimism.