Daily Forex Market Preview, 24/11/2017
The euro extended its gains yesterday as economic data was upbeat, including the regional data from Germany. The U.S. and Japan markets were closed, but the currency managed to push higher amid lower trading volumes. The broad flash PMI numbers showed a positive increase adding to the gains.
In the UK, the second revision to the GDP showed no changes as the UK's economy was seen rising 0.4% in the third quarter. Data from Canada saw retail sales rising below forecasts of just 0.3% but it’s better in comparison to the previous month's decline of 0.4%. Headline retail sales increased 0.1%, offsetting the 0.1% decline from the month before.
Looking ahead, the economic calendar today is quiet. Flash manufacturing PMI numbers from Markit will show how the sector performed for the month of November.
EURUSD intra-day analysis
EURUSD (1.1855): The euro currency was seen extending the gains amid holiday thin trading yesterday. Price action remains biased upwards as the EURUSD is approaching a 2-month high. However, the recovery above the resistance level of 1.1843 - 1.1822 signals some weakness. Therefore, there is a strong risk of EURUSD pushing lower with the resistance level coming back into play. Alternately, if EURUSD manages to continue trading above this resistance level, then further upwards movement can be expected. There is some divergence being built on the intraday charts, which could suggest a near-term decline in prices.
USDJPY intra-day analysis
USDJPY (111.48): The strong declines in the Japanese yen stalled after price action closed with a doji candlestick pattern on the daily chart. This indicates a near term correction in price. However, there is equally the risk of price extending the declines on a close below the doji's low. In the short term, we expect to see a higher low being formed, which will confirm the upside correction towards 112.00 level. This previously served as support but, following the breakdown below this level, we now expect to see 112.00 turn to resistance. To the downside, the lower support at 111.00 remains in sight. The bias changes only on a strong close above 112.00 level, in which case USDJPY can be seen targeting 113.00.
XAUUSD intra-day analysis
XAUUSD (1291.57): Gold prices have managed to maintain their gains above the 1285 resistance level that was breached earlier. However, price can be seen struggling to push higher. Current price action in gold shows the price testing last week's highs near the 1290 area. Unless there is a strong breakout above this previous high, gold prices might remain flat or even biased downwards. Support at 1285 is seen as the immediate level to the downside, while a breach of 1290 area will signal a move towards the next main resistance at 1300 region.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
