Daily Technical Analysis. Monday, November 20
The Euro fell on Monday as pressure rose after German Chancellor Angela Merkel announced the failure of talks between the four parties to form a coalition government, which could signal new elections in Germany.
Despite recent declines, the pair still has to break below 1.1720 and 1.1700 support levels to confirm the downward trend. Breaking the resistance levels at 1.1740 will affect the recent bearish trend and cause the pair to proceed on a sideways trend.
The GBPUSD pair continues to fluctuate in a bullish range during the Asian Trading Session on Monday. Technical reading shows that prices are consolidating after the recent strong rally, with no signs of a general bullish trend change. A break of support levels at 1.3180 would allow prices to retreat further and may test the 1.3140 levels.
At the same time, a breach of near resistance levels at 1.3210 will continue the bullish trend and possibly test the 1.3230 levels.
The US Dollar continues its decline against the Yen during Asian trading on Monday, as a result of the increasing demand for the Japanese currency as a safe haven in the markets. Continuing tensions over the US Tax Cuts Bill is also not helping matters for the US dollar.
The return of the pair’s renewed pressure on the movement of the pair will consolidate the previous bearish trend. A break below the near support level at 111.90 will consolidate the declines and open the door to test 111.70 . The return of the price above the resistance level at 112.20 would temporarily ease selling pressure.
Gold fell on Monday with the Dollar recovering and after the yellow metal hit its highest level in four weeks on Friday.
The rebound in the price and a breach of the resistance levels at 1297 will strengthen the optimism and push the way to test the price levels at 1306. A return of prices below the 1290 resistance level will temporarily ease the bias.