Daily Forex forecast analysis 11-14-2017 – we analyzed the upcoming currency pairs and events of the day that could impact the Forex market, These analysis are published here each day.
Forex Forecast Analysis 11-14-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro-dollar remained around the 1.1660-1.1669 key resistance area yesterday and it is still located there, which communicates selling interest is reduced so far there. A further weakness of the US dollar, since the tax code debacle is still in play and the market expects some clear hints on the implementation period. As long as the price remains above the 4h chart 20 EMA expect more upside gains, only a strong breach below the EMA being able to negate our bullish bias.
If the price moves on the upside, above the key resistance area, 1.1688, last week high could follow as short-term resistance, and if a clear break above it takes place, we expect 1.1724 and 1.1779 to be reached.
Renewed selling pressure that will drive the price action below our key resistance area will find support around the EMA. Below it, 1.1624 and 1.1602 are expected to draw bulls’ attention.
- From EU, GDP figures and Industrial Production figures are due at 10:00 am GMT.
- From US, PPI figures are due at 01:30 pm GMT.
The dollar-swiss is still consolidating higher, below our broken triangle pattern. Yesterday, we’ve seen some selling pressure emerging, after a retest of the bottom line of the structure, but the downside was short-lived and the bulls managed to recover most of the gains until the time of writing. Looking ahead, if the market will continue to consolidate below the triangle, we expect selling pressure to emerge there and negative news from the US will be a good catalyzer for that move.
Resistance follows around the bottom line of the triangle and around yesterday high. A break above that area, inside the triangle could spark new bullish momentum and send the price action towards the weekly high located around the 1.0029 level.
On the downside, if the sellers will manage to keep the upside limited, below the triangle structure, new selling pressure will send the price towards the 0.9939 and 0.9902 support levels.
- From Switzerland, Producer Price Index figures will be published at 08:15 am GMT.
Cable had been under pressure yesterday, as worries over the UK Prime Minister ability to handle the rough Brexit negotiations are mounting. In the last months, rumors about his resignation had appeared and now it seems like she is overwhelmed by the situation again. We expect some clear hints from the UK officials, but her resignation will have a strong negative impact on sterling, as it will draw more uncertainty to an already tense situation.
From a technical point of view, thus far the 20 EMA managed to cap the upside and we expect to do so in the short-term. Only a clear break above it could potentially send the price action towards the 1.3174 area, where the market opened yesterday.
On the downside, a continuation of the selling wave will put pressure on the yesterday low and a breach below it will mean weekly lows, located around the 1.3043 area will be under pressure then.
- From UK, Inflation figures are due at 09:30 am GMT, and should generate strong volatility.
Dollar-yen continued to consolidate on the upside yesterday and thus far the price action did not manage to go too far from the EMA. The price started to consolidate on Friday and since the move came after a selling leg, we could see a further continuation on the downside, if the fundamentals will support that, as well. If the current consolidation will turn out to be a bullish accumulation, then a surge towards the weekly highs is expected.
Technically speaking, a strong break below the EMA is required to confirm that sellers resumed strongly and if that takes place, we expect the price action to head towards yesterday support, located around the 113.26 level. 113.01 and 112.83 should follow, if the sellers will manage to break below last week low.
On the upside, if the price action continues to head higher, 113.76 and 114.01 are expected to act as resistance levels. So far, there is no reason for the price to make solid gains.
- From Japan, Gross Domestic Product figures are due at 11:30 pm GMT.
The Aussie managed to break below the weekly support around the 0.7624 level and is currently trading around that point. Since a breach below the weekly low had taken place, that communicates the sellers are still in control and the downside is favored in the near future. Even though a consolidation higher took place after the break, we believe the sellers will attempt to break below current weekly lows.
If the selling pressure will resume again, 0.7607, yesterday low will come into play and buyers should find it hard to cap the downside there. A further continuation below that spot, will mean 0.7577 will follow.
On the upside, buyers should not manage to drive the price action above the 20 EMA and 0.7660, where we expect sellers to resume, if the quote hits that area.