General analysis about forex market: 14th November -18th November

EURUSD technical analysis

There has been a huge drop in the EURUSD pair in the last week in the event of the presidential election. The pair fell sharply after hitting a critical resistance level at 1.1300 level. From that levels, the pair has cleared all the important Fibonacci retracement support levels in the daily time frame. The bullish Fibonacci retracement level was drawn from the low of 2nd December 2015 to the high of 2nd may 2016.Currently, the price is trading below the 61.8% retracement level which is at 1.09398.Professional price action traders are looking for a minor retracement in the EURUSD pair to enter short in the market. If the price move above the 6.18% retracement level then we will see a decent corrective move in the EURUSD pair towards the next critical resistance level at 1.10690.

A clear break of that level will bring further bullish momentum in the market towards the major resistance level at 1.12004.However, the recent strengthening of the U.S dollar doesn’t support the strong bullish correction of the EURUSD pair in the upcoming week. The pair is most likely to fall sharply after some minor correction in its bearish move. Professional traders will look for selling the opportunity to short the pair near critical resistance level with bearish price action confirmation signal. If the resistance level at 1.09398 holds then the first bearish target for the EURUSD pair would be the critical support level at 1.07009.A clear decisive break of that level will bring further downward momentum in the EURUSD pair towards the major support level at 1.05147.

GBPUSD technical analysis

The Great Britain Pound has sharply moved upward in the last week after forming an inverted hammer in the daily chart just after breaching the critical resistance level at 1.23309.Due to the recent presidential election, the U.S dollar has gained immense strength in the market and there is strong chance for the Great Britain Pound to again start its bearish move in the market. However, the pair is most likely to find strong support near the 1.23309 level which was acting as strong resistance previously. If the pair manages to breach that support level then we will see strong bearish move in the GBPUSD pair towards the next critical support level at 1.20821.From that level, professional traders are expecting a ranging movement in the GBPUSD pair since this level has been acting as strong support for this pair after the Brexit event. Though the U.S economy is pretty stable at the current moment but the professional traders are looking for buying opportunity in the GBPUSD pair near the 1.23309 level. If the support at that level holds the bullish target for the GBPUSD pair would be the next critical resistance level at 1.27953.The form that levels the pair is most likely find significant selling pressure in the market. However, a valid break of that critical resistance level will bring fresh buying pressure in the market which will ultimately target the next critical resistance level at 1.34421.A valid break of the price above that level will confirm the temporary bottom formation of the GBPUSD pair near the 1.19180 level.

NZDUSD technical analysis

There has been sharp fall in the NZDUSD pair in the last week due to immense strength of the mighty U.S dollar in the event of the presidential election. Currently, the price is trading well above the 38% Fibonacci retracement level in the daily time frame. The bullish Fibonacci retracement level has been drawn from the low of 19th January 2016 to the high of 6th September 2016.The support level of the 38% retracement level lies at the point 0.70508.A valid break of the 38.0% retracement level will bring further downward momentum in the NZDUSD pair towards the next critical support level at 0.69136 where the 50% retracement level lies. Professional traders will be cautiously waiting for bullish price action confirmation signal at that level to enter long on the Kiwi dollar. However, if the support level at 0.69136 fails to provide enough buying pressure to the NZDUSD pair then the 61.8% retracement level will be the last resort for the buyers. The support level at 0.67786 is going to provide strong support to the NZDUSD pair and professional traders will be cautiously waiting to enter long with bullish price action confirmation signal at that level. On the contrary, a clear decisive break of the price below that level will bring strong bearish momentum in the NZDUSD pair towards the next critical support level at 0.63513 level. (Low of 19th January 2016)

USDJPY technical analysis

There has been a strong bullish rally in the USDJPY pair in the last week and currently the price heading towards the critical resistance level at 107.486 level. This level is going to provide short term scalping opportunity to the short time frame traders since the price is most likely to drop 30 to 40 pips after hitting that resistance level. However, if the pair manages to continue its bullish move by breaching the critical resistance level at 107.486 level then we will see a strong bullish rally in the USDJPY pair towards the next critical resistance level at 111.525 level. A clear bullish break of that level will confirm the end of bearish momentum in the daily chart of the USDJPY pair. On the contrary, if the key resistance level at 107.486 level manages to create enough selling pressure in the market then first bearish target for the USDJPY pair would be the critical support level at 104.208.A clear decisive break of the price below that level will gain bring fresh selling pressure in the market.

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