Weekly Technical Analysis For November 19th to 23rd, 2018

ECB Meeting Minutes Are In Focus: Will EUR/USD Break Out 1.1446?

EUR/USD:

The EURUSD pair showed an upward movement after hitting the 16-month low level last week.

If we look at last Wednesday’s US consumer price index; it rose 0.3% last month, picking up from the 0.1% increase seen in September. In the 12 months through October, inflation rose 2.5%, in line with expectations and up from 2.3% in September. Upbeat economic data are supporting for the Federal Reserve to move forward with its plan for gradual interest rate hikes.

Looking ahead among next week's US data, Building Permits, Housing Starts, Core Durable Goods Orders as well as Existing Home Sales will be closely followed by traders.

The US Durable Goods are expected to fell by 2.5% last month. Core orders, which exclude volatile transportation items, are forecast to rise 0.4%.

In addition to the US data, watch out for the ECB meeting minutes. The ECB kept policy unchanged their last meeting and they stayed on track to end its bond purchases this year and raise interest rates next autumn. The minutes may help forecasters model ECB’s upcoming decisions.

In the event that, the EURUSD rise continues, we will see 1.1446 as a key resistance level. Moreover, in order for the upward movement to gain more momentum, it needs to break out and sustains above 1.1446 on a four hourly basis. At this point, the next resistance level can be seen at 1.1531. Otherwise, we will see the daily support level at 1.1367again.

Support: 1.1367 –1.1262 - 1.1188 
Resistance: 1.1446 - 1.1531 - 1.1607

GBP/USD:

The Sterling dropped sharply last week as investors feared political turmoil in the country could see it crash out of the European Union without a divorce deal. 

Additionally, the annual rate of inflation in the UK unexpectedly remained steady in October, according to data released on Wednesday. The consumer price index was unchanged at 2.4% last month, matching the annual rate of inflation seen in September. Economists had expected the annual rate of inflation to tick up to 2.5%.

The GBPUSD pair closed last week below the 1.2844 key resistance level. As long as the price stays below 1.2844, on a four hourly basis, the selling pressure is most likely dominate and we will follow 1.2712 as a daily support level. On the other hand, if the price goes beyond 1.2844, the next daily resistance level will be at 1.2961.

Support: 1.2712 – 1.2624 – 1.2494

Resistance: 1.2844 - 1.2961 - 1.3050 

USD/JPY:

The USDJPY currency showed a downward movement. In the event that the fall continues, we will see the key level of 112.46. However, as long as the price stays above 112.46 on a four hourly basis, the fall may be limited. On the other hand, if the price moves up, the resistance level can be found at 113.63.

Support:  112.46 - 111.66 - 110.86
Resistance: 113.63 - 114.63 - 115.61

GOLD:

The Gold Price found buyers from the 1199 main support level and moved up to the 1225 major resistance level. In order for the bullish action to continue, it needs to break out 1225 and stay above that level on a four hourly basis. At this point, the next resistance level can be found at 1235 Otherwise, we will face the support level at 1214

Support: 1215 - 1207 - 1199

Resistance:  1225 - 1235 - 1243

18 Nov 18 (Sun)

08:44 pm


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