

Daily Technical Analysis. Wednesday, November 22
EURUSD
The Euro saw a rise in Asian trading on Wednesday as the Dollar weakened against a basket of major currencies, including the Euro.
Technical reading shows that prices are trying to consolidate after the recent strong rally, with no signs of a general uptrend change. A break of support levels at 1.1700 would allow prices to fall further and likely test the 1.1700 levels.
At the same time, a breach of resistance at 1.1750 levels would establish the bullish trend and possibly test the 1.1770 levels.
GBPUSD
The British Pound rose on Wednesday to continue to record gains to support its moves after comments. John Canylayev, the Vice President of the Bank of England, said Inflation expectations remained high in the fourth quarter of the year, after stabilizing in the third quarter below expectations. But he said he preferred to wait for signs of higher wages before continuing to raise rates.
Technically, the pair is moving within a bullish path, with no signs of a change of direction. A break of support at 1.3240 levels, would allow prices to fall further and test 1.3220 levels. At the same time, a breach at 1.2360 resistance level will establish a bullish trend and possibly test 1.3280 levels.
USDJPY
The Dollar fell against the Japanese Yen in Asian Trading on Wednesday as the US Dollar fell, in line with a 10-year decline in US 10-year yields to dampen gains on Monday. Also supporting the strengthening of the Japanese Yen, is the indication that the BoJ may begin to end the Monetary Stimulus by raising the target of return on Bonds.
The return of selling pressure on the movement of the USDJPY pair will consolidate the previous bearish trend. A break below the support levels near 112.20 will consolidate the declines and may cause a further test at 111.85 levels. A return above the resistance level at 112.70 would ease the selling pressure temporarily.
XAUUSD/GOLD
Gold prices fell on Wednesday after Tuesday’s low, as demand for the Precious Metal plummeted following comments by Federal Reserve Chairman Yellen as well as the recovery of the Stock Market.
Yellen had commented that her expectations are stable on the recovery of Inflation Rates. Despite the recent declines in prices, Gold prices still have to break below the support levels at 1270 and 1277 to confirm a continued decline. A break of the resistance levels at 1284 would affect the recent bearish trend and cause the market to proceed on a sideways trend.