Daily Forex forecast analysis 11-24-2017 – 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 11-24-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro continued to climb higher yesterday, although not at the same fast pace due to low liquidity. There has the Thanksgiving holiday in the US and volatility had been weak especially in the US. However, the price is located very close to the 1.1860 weekly high and given the structure of the market, at this point we assume a breakout and continuation higher seems the most likely scenario.
If that will be the case and bull will break through the level, 1.1881 and .1.1914 are next and we expect resistance around them as well. Since it is the last day of the week we should see no significant swings.
On the downside, if selling pressure resumes, 1.1835 and 1.1820 are two of the levels were we expect some bullish interest to emerge. Below them the 20 EMA is expected to cap the downside as well.
- From Germany, three IFO indicators are due at 09:00 am GMT.
- From US, Markit Manufacturing PMI, Markit Services PMI and Markit PMI Composite will be published at 02:45 pm.
Dollar-swiss consolidated in a very narrow range following the Wednesday slump. It seems like the market saw the FOMC Minutes treating with caution the inflation development, thus raising doubts over further rate hikes in the future ahead. Since the bulls were unable to rebound significantly, we assume that the sellers are still in control and the downside could resume at any time.
However, if the corrective structure will continue to extend higher, 0.9829 is expected to act as resistance level, followed by 0.9845, where the 4h chart 20 EMA is also located and that is a place where stronger selling interest should be located.
On the downside, 0.9806 and 0.9794, current weekly low, will be under pressure if the selling resumes and a break lower will mean the next target will be 0.9771 support level.
- From Switzerland, Industrial Production figures are due at 08:15 am GMT.
Cable consolidated lower for the last 24 hours and that was due mainly to worse than expected business investment figures that were released yesterday. It seems like the uncertain Brexit negotiation is making investors cautious. However, since volatility had been weak, the price action dip was relatively insignificant, but so far, there is no sign on bullish activity emerging strongly.
As a whole, looking at the entire chart, we can see that the market is in an uptrend and the 1h chart 20 EMA had held decently for a long time. If the bulls resume, they could drive the price towards 1.3299 or 1.3320, where sellers are expected to resume again.
If the corrective move will continue to extend on the downside, 1.3277 followed by 1.3257 should act as support, given the fact there were some spikes around them in the recent past.
- From UK, BBA Mortgage Approvals will be published at 09:30 am GMT.
Dollar-yen had also consolidated yesterday due to weak volatility but today we can see the price picking up decently in the Asian session, showing that there was buying interest at those low levels. However, since the parabolic structure is still in play, even though the upside will extend higher, we expect the 4h chart 20 EMA to act as a pivoting point and sellers should start to drive the price lower again.
So far, the price action is located around our 111.45 short-term resistance and a break above it will mean 111.66 and 111.86, where the 20 EMA is also located, should cap the upside and bring strong sellers into the market.
On the downside, 111.09, the area where the downside leg stopped, should act as support if the selling pressure resumes. 110.90 follows pretty close below it.
The Aussie consolidated lower the last 20 hours or so, but the price action is still located little above the 1h chart 20 EMA. We are also above the trend line by more than 40 pips, which communicates the bullish interest had been strong enough this week. The consolidation that took place recently could turn out to be a short-term bottoming formation and the price action will head up again. In case a continuation lower takes place, a weakening of the bullish momentum will be signaled.
So far, there is support around the 20 EMA and 0.7620 level. A bullish rebound could put pressure on yesterday high, while a break above it will mean 0.7650 area could be reached.
On the downside, bears should break below the EMA and 0.7620 to manage to reach 0.7609 and 0.7594. The trend line is next below those two support levels and stronger bullish activity is expected there.