Weekly Technical Analysis For November 12th to 16th, 2018

Will The EUR/USD Selling Pressure Continue?

EUR/USD:

The US Dollar extended gains versus the Euro after last week’s FOMC Monetary Policy Meeting. The EURUSD pair found sellers from the resistance level of 1.1446 and then closed the week below the 1.1367 daily level.

The Fed kept interest rates unchanged at 2.25%, as expected. However, the Federal Reserve appeared poised to deliver another interest rate hike next month. They also added that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. Hawkish Fed Meeting and strong US economic reports have supported the USD in recent weeks.

Looking ahead among next week's US data, Producer Price Index, Retail Sales, NY Empire State and Philadelphia Fed Manufacturing Index as well as the Crude Oil Inventories, will be closely followed by traders.

One of the major indicators of economic conditions, the US CPI Inflation, will be published on Wednesday. October's customer price index is expected to come out at 2.5%, higher than a previous number of 2.3%. However, the Core CPI inflation is expected to stay at 2.2%. Acceleration in headline inflation may support rate hikes from the Fed.

In addition to the US data, the Eurozone Consumer Prices index will be announced next week and it is expected to stay at 2.2% in October as the same as the previous number. A higher than expected reading should be taken as positive for the euro.

Watch out for the 1.1367 daily resistance level. As long as the price stays below 1.1367, on a daily basis, the downward movement might continue and we will see 1.1262 as a key support level. On the other hand, if the pair goes beyond 1.1367, the next resistance level can be found at 1.1446.

Support: 1.1262 - 1.1188 - 1.1122

Resistance: 1.1367 - 1.1446 - 1.1531

GBP/USD:

In the UK, we will focus on the Unemployment Rate and CPI Number this week. The UK Unemployment Rate is expected to stay at 4.0%, the same as the previous reading. The CPI inflation is expected to rise to 2.5% from 2.4% year-on-year. A better than expected reading would support Sterling

The GBPUSD pair dropped to the daily support level of 1.2961. However, as long as the pair stays above 1.2961 on a daily basis, the fall may be limited. At this point, we will see 1.3050 as a resistance level. On the other hand, if the price breaks down 1.2961, the next support level can be found at 1.2844.

Support: 1.2961 - 1.2844 - 1.2712

Resistance:1.3050 - 1.3152 - 1.3241

USD/JPY:

The USDJPY pair closed last week above the 113.63 key support level. As long as the currency stays above 113.63 on a four hourly basis. The Upward movement may continue. At this point, we will follow 114.63 as the daily resistance level. On the other hand, If the pair drops below 113.63, we will face the support level at 112.46.

Support: 113.63 – 112.46 - 111.66

Resistance: 114.63 - 115.61 - 116.89

GOLD:

The Gold Price showed bearish action and dropped to the daily support level of 1207. However, as long as the price sustains above 1207 on a daily basis, the fall may be limited and the resistance level can be found at 1215. On the other hand, If the price drops below 1207, the next support level will be at 1199.

Support: 1207 – 1199 - 1188

Resistance: 1215 – 1219 - 1225

11 Nov 18 (Sun)

09:15 pm


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