Daily Technical Analysis. Thursday, November 23
The Euro rose during the Asian session on Thursday to hit its highest level this week, to continue yesterday’s high against the Dollar’s weakness following the Federal Reserve Meeting Minutes.The Federal Reserve members remain divided on the future of the Monetary Policy in light of the current decline in Inflation.
The Euro is currently awaiting a number of important data and events, such as the release of Growth Data for Germany and France, as well as Industrial and Service Sector Performance Data, which could affect the movements of the single European Currency.
Technically, a rebound in the pair could reinforce the previous bullishness. The pair’s success in breaching the near resistance levels at 1.1840 will boost optimism and push the price test to 1.1860 Only a return of 1.1800 below the 1.800 level would temporarily ease the bias.
The EURUSD has been closing above 1.1860 on a weekly basis, but has positive indication to reach first price targets at 1.1920
The Pound benefited from the Dollar’s slide yesterday to reach its highest level in three weeks. Technically, the pair is moving within the bullish trend and the technical indicators are supporting this trend considering that breaching the resistance levels close at 1.3340 will enhance the optimism and push the price test to 1.3380. A return below 1.3290 support would temporarily ease the bias.
The US Dollar fell to a five-week low against a basket of major currencies after the Federal Reserve’s meeting minutes. The Yen rose during today’s trading to a 10-week high despite the absence of Japanese markets today due to Japan’s Labour Thanksgiving Day holiday.
Technically, a negative reading of the pair’s movement, especially after yesterday’s closing below the 111.60 important support levels. A clear control is however noticed on the movement of prices towards a bearish trend, which is expected to continue declining to 111.00
Gold prices fell slightly on Thursday after yesterday’s gain on the US Dollar, which fell sharply after the meeting of the Federal Reserve Bank. Gold is exploiting this confusion in Inflationary Expectations and Monetary Policy, especially as the markets were overshadowed by expectations of a Rate Hike at the next bank meeting in December.
Technically, a rebound of prices would reinforce the previous bullish trend. The success of the price in breaching the near resistance levels at 1292 will boost optimism and push the price test to 1296 levels. A return of prices below the 1288 support level would temporarily ease the bias.