Daily Technical Analysis. Tuesday,, November 14
The single currency of the European Union region fluctuated in a narrow upward range against the US Dollar during Asian Trading on Tuesday, in anticipation of significant Economic Data from the EuroZone (German Gross Domestic Product and Consumer Price Index).
Technical reading still shows that prices are still moving within the framework of a positive correction to the general bearish trend. Resistance levels at 1.1675 and 1.1695 are still considered the most important short term levels and these levels are likely to return sellers again to the market. At the same time any indication of change in direction in the short term would negatively affect the movement of prices.
The British Pound was fluctuating within a bullish range during today’s Asian Trading Session after falling against the US Dollar yesterday, amid a lack of Economic Data.
Technical reading shows that the pair is trying to absorb the recent selling pressures. With no clear signs of a reversal of the overall bearish trend, if the pair manages to break through 1.3125 resistance levels, the market may likely correct higher and possibly test the second resistance level at 1.3145. A break at the 1.3100 support level would establish a bearish trend.
The US Dollar saw a decline against the currencies, including the Japanese Yen, after the US Senate postponed the draft Tax Law for a year. Adding to the demise of the Dollar is also the least than expected Data from the US Unemployment Reports yesterday.
Despite recent declines, the Dollar-Yen pair still has to break below the support level at 113.00 to confirm a continuation in decline. The breach of the resistance levels at 113.50 would affect the recent bearish trend and cause a sideways trend.
The lack of clarity still clearly affects the market’s trading of the USDCHF pair, with no strong signs of a possible price break in any direction.
A breach above the top of the close price at 0.9985 or a break of the near-price bottom at 0.9930 would give more clarity to the expected movement which would be the same direction of the break.
Gold rallied during the Asian session on Friday, after edging close to its highest level in three weeks yesterday. The recovery in the prices of the Yellow Metal is due to the decline in the Dollar levels and the rise in demand for safe haven.
A rebound in the price of Gold will help strengthen the bullishness of the market. The success of the price in breaching near resistance levels at 1288 will enhance optimism and push the price test to 1291 levels. However, a return of prices below support levels at 1284 would temporarily ease optimism.