Daily Forex forecast analysis 11-22-2017 – 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 11-22-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro had been hovering between the 1.1724 support and the 4h chart 20 EMA for the last 24 hours, consolidating after the surge of political uncertainty in Germany. So far, there are no headlines that hurt the single currency, but technically speaking, the consolidation came after a strong move down, so the most likely scenario at this point is a continuation on the way down, below yesterday low.
If selling pressure will resume again, we expect the price action to head into the 1.1724 support, where buyers came in yesterday. A breach of that level + lows will mean 1.1702 and 1.1677 are due to follow.
On the upside, the 20 EMA and the 1.1760 resistance area will pose big problems for the buyers, if they manage to push the price there. Only a clear break above them will mean the bullish momentum will further drive the price towards 1.1804.
- From EU, Consumer Confidence is due at 03:00 pm GMT.
- From US, Initial Jobless Claims, Continuing Jobless Claims and Durable Goods Orders figures will be published at 01:30 pm GMT.
Dollar-swiss found again resistance around our 0.9940 area and since then we see five bearish candles in a row on the 4h chart. Since the bears managed to close all candles that way, it communicates the bulls are being overwhelmed by the selling pressure and we could see further downside gains in the short-term. Only a solid break above yesterday high could negate your current bearish bias.
If the sellers will continue to drive the price action lower, below the current 0.9902 support, we expect 0.9880 and 0.9867 to follow as support and at least some short-term profit taking should be seen around those levels.
On the upside, buyers should first drive the price action above the 20 EMA, in order to be able to put pressure again on the 0.9940 area, where the selling started yesterday. A break above yesterday high seems pretty unlikely at this point, but if that happens, 0.9970 will follow then.
Cable consolidated above the 4h chart 20 EMA for the last 24 hours, which communicates that the buyers are able to hold the ground at that high point. Since selling interest is reduced and we do not have any major sign of a market turn, we keep our forecast that the price action will continue to head higher, above the current weekly high. Only a strong break below the 20 EMA could hurt our bullish bias.
If the bulls will push the price higher from the current point, 1.3267 resistance level will follow shortly. A break above it will put pressure on the weekly high, while a new break higher could drive the price towards 1.3299 and 1.3320 levels.
On the downside, if sellers resume, we should see support coming around the 20 EMA and 1.3238. Below, 1.3217, where buyers had resumed yesterday, should also be a potential entry point, so we have a good confluence of bullish signals there, which means the downside could be short-lived.
So far the bears treated the 4h chart 20 EMA and the trend line as a pivoting point as for the last 24 hours the price had been again under pressure. We are again below the trend lien by around 40 pips and bulls will have a tough mission to drive the price above it again. Looking at this point, it seems like the sellers will manage to retest the current weekly low, located around 111.88 level.
If that will be the case and buyers won’t manage to have a clear response, we expect the price action to break lower below the 112.21 and 111.99 short-term support levels and reach the weekly low.
On the upside, the 20 EMA and 112.39 represent the first line of defense, where sellers could rebound again. Above them we have the trend line and 112.67, but at this point in time, reaching them looks pretty unlikely.
We’ve mentioned in our yesterday daily forecast that we expect bullish momentum to resume shortly, due to the fact that the price action is located around a strong support + the bearish trend looks over extended. As you can see from our chart, the bulls resumed around the 0.7535 weekly low and rebounded by 60 pips. Currently, there is a tough of war going on around the trend line and who will win will decide the next direction.
If bulls will manage to drive the price action above the trend line and key support again, we expect yesterday high around 0.7594 and 0.7625 to be reached in the short or medium term horizon.
On the downside, if the sellers will continue to drive the price action well below the 20 EMA, then 0.7550 and 0.7535, where the bullish leg started, could follow as support again.