Daily Technical Analysis. Thursday, November 02
The Euro rose during today’s session to reach its highest level this week as the Dollar fell against the major currencies after the Federal Reserve meeting, which showed the economy’s willingness to accept the decision to raise the US Interest Rate.
Technically, the resurgence of selling pressures on the pair’s movement would reinforce the previous bearish trend. A break below the near support levels at 1.1640 will consolidate the declines and further test the 1.1620 levels. A return above 1.1660 resistance level would however, ease selling pressure temporarily.
Technical reading shows that prices for the GBPUSD pair are trying to catch a breath after the recent strong rally. A break at near resistance 1.3290 levels would invite buyers to enter the market and possibly test the 1.3320 levels. This will stimulate the price to regain the bullish trend again.
A break at 1.3260 support levels would allow prices to retreat further and may test 1.3240 levels.
The US Dollar weakened against the Yen on Thursday, causing a rebound of the safe haven currency, following its poor performance in the previous two market sessions.
The volatility in the Asian Stock Markets also helped to increase the demand for the Japanese Yen, especially as markets await President Trump’s announcement of the Federal Reserve Chairman today.
Technically, USDJPY needs to break above the resistance levels at 114.25 and 113.95 to confirm the continuation of the current uptrend. A drop below the near support at 113.70 would affect the uptrend and cause the market to proceed on a sideways movement.
Gold rallied Thursday to the highest level this week, as the US Dollar declined following the Federal Reserve’s outlook on the US Economy and the Tax Bill announcement.
The return of the selling pressure once again on the price action would consolidate the previous bearish trend. Breaking below the support levels near 1270 will consolidate the declines and further to test the 1265 levels. The return of the price above the resistance level at 1273 would temporarily ease the selling pressure.
Crude Oil prices are trading near a nine-month high, after US Oil Inventories fell last week, as well as price support from expectations that OPEC will continue to cut output.
Despite recent price hikes, the precious meta still has to break above stability levels at 1284 to confirm the continuation of the current uptrend.
A drop below the support levels at 1277 would affect the recent uptrend and cause the market to proceed on a sideways movement.