Daily Technical Analysis. Tuesday, November 21
The EURUSD saw slight gains during the Asian Session on Tuesday after yesterday’s drop due to current political tensions in Germany following the failure of the German Chancellor to form a coalition government.
Technical reading shows that prices are still moving within a negative correction to the general upside. The support levels at 1.1720 and 1.1700 remain the most important short-term levels and the pair’s strength above these levels will restore the confidence of the buyers. At the same time, any change to this trend over the short term, will positively affect the movement of prices.
The British Pound is currently trading near its three-week high, as Sterling is supported by news of the UK Council of Ministers regarding Brexit.
The UK is set to increase the settlement offer to leave the European Union, making betting on the Pound more attractive this week, as the cabinet plans to support Prime Minister Theresa May’s plans for a financial settlement.
Technical reading shows that prices are trying to consolidate after the recent strong rally, with no signs of a general upward trend change. In the medium term, a break of resistance levels at 1.3250 would cause the market to remain bullish and possibly test 1.3280 levels. A break of support levels at 1.3220 would allow the prices to retreat further and maybe test 1.3185 levels.
The USDJPY pair is fluctuating in a narrow upward range as the US Dollar recovers against the major currencies, and the rebound of Asian stocks, reducing the demand for the safe haven currency.
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 there is a breach at the 112.70 resistance level, the market would likely correct higher, and possibly test the second resistance levels at 113.20 while breaking the support level at 112.40 would cause the market sentiments to turn bearish.
Gold prices rose slightly during the Asian Session on Tuesday after yesterday’s drop to a one-week low as negative pressure on Gold prices continued following the Dollar’s strength.
In addition, Gold did not benefit from the decline of Asian Stocks beginning of trading today. However, technical readings indicate that prices are still moving within a negative correction to the general upside. The support levels at 1277 and 1274 are still considered the most important short term levels and the price stability above these levels will restore the confidence of the buyers. The signal of a change of direction on the short term would positively affect the movement of prices.