Daily Technical Analysis. Friday, November 17
The Euro was up against the US Dollar during the Asian Session on Friday. The pair is about to make its second consecutive weekly gain against the greenback, with strong Data coming in from Germany showing Europe’s biggest Economy Growth at its fastest pace in three years. Investors are looking forward to comments by European Central Bank Governor Mario Draghi early this afternoon. The EURUSD pair has so far risen 1.3% against the Dollar this week.
Technically, the pair’s success in breaching and stabilizing above the near resistance levels at 1.1800 will strengthen the optimism and push the price test to 1.1830. A reversal below the 1.1780 level would temporarily alleviate the optimism.
The British Pound continued to rise against the Dollar in Friday’s session for a fourth session in a row, rising by 0.25% yesterday, following a somewhat positive comment by the EU Council Chief, Donald Tusk on Brexit negotiations, where he stated that the onus was on London to ensure the two sides came to a deal before Britain’s scheduled departure.
Despite recent gains, the pair still has to break above the resistance at 1.3230 and 1.3240 to confirm the uptrend. A drop below the near support at 1.3210 would affect the uptrend however, and cause a sideways trend of the pair.
The US Dollar was lower against the Japanese Yen on Friday as the Dollar weakened against a basket of major currencies, leading the Yen to a four-week high. Over the course of the week, the Yen has so far gained 0.9% against the Dollar, closing in to record its second consecutive weekly gain.
Technical readings indicate the return of selling pressures on the pair’s movement which would consolidate a bearish trend. A break below the support level near 112.40 will cause declines and open the door to test the 112.20 levels. A reversal above the resistance at 112.70 would temporarily ease selling pressure.
Gold prices advanced during the Asian Session on Friday to continue rising for a second day in a row.
The lack of clarity still clearly affects the trading of the yellow metal, with no strong signs of a potential price break in either direction. A breach above the top of the close price at 1288 or a break of the near-price bottom at 1270 would give more clarity to the expected movement which would be in the same direction as the break.