Daily Technical Analysis. Tuesday, November 07
Volatility continued to dominate the movements of the Euro during the Asian Trading Session on Tuesday after yesterday’s unstable performance of the single European Currency, which failed to make gains against the decline in the US Dollar levels at the beginning of the week.
Technically, the renewed pressure on the pair’s movement will reinforce the previous bearish trend. A break below the 1.1600 support level will consolidate the pair and may test the 1.1570 levels. A return above the 1.1620 resistance level would temporarily ease selling pressure.
The British Pound strengthened against the US Dollar during yesterday’s trading session, showing its rebound for the second consecutive session from its lowest level since October 6. This is as a result of comments by British Prime Minister Theresa May and Central Bank Governor Mark Carney on Monday.
Slight declines are seen during today’s session. Technical reading still shows that prices are still moving within the framework of a positive correction to the general downward trend.
Resistance levels at 1.3180 and 1.3210 are still considered to be the most important short-term levels. These levels are likely to make the market more bearish, while any short-term trend reversal will negatively affect price action.
Lack of clarity is dominant with the USDJPY movement during the Asian Trading Session, with no strong signs of a possible price break in either direction.
A break above the top of the close price at 114.40 or the break of the near-term price at 113.70 would provide more clarity as to the expected movement which would be in the same direction as the break.
Despite recent declines, the USDCHF pair still has to break below the support levels at 0.9970 and 0.9940 to confirm the continuation of its decline. A break near resistance levels will affect the current bearish trend, and cause the market to proceed on a sideways movement.
Gold prices are weak on Tuesday morning after starting off the week strong yesterday. The yellow metal found support from the Dollar’s decline and rising demand for safe haven amidst political tensions.
Technical reading continues to show that prices are still moving within the framework of a positive correction to the general bearish trend.
Resistance levels at 1280 and 1284 are still considered to be the most important short-term levels and these levels are likely to maintain the bearish trend, while any short-term trend reversal will negatively affect price action.