Daily Forex forecast analysis 11-29-2017 – 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 11-29-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro continued to lose ground against the US dollar yesterday and so far, the price action is located below the 1.1878-1.1860 key area, which shows that there was selling pressure above, even a bullish breakout took place. We expect intense activity today as well, since economic figures, both from the EU and US are due to being released + the US Senate vote is approaching and any new highlights could spark volatility.
In terms of the technical position of price, the fact that it broke below the above mentioned area and the 4h chart 20 EMA suggests a weakening of the bullish momentum. We could see some further weakness that will drive the price towards 1.1816 and 1.1789 support.
On the upside, the 20 EMA and the key area are expected to act as a resistance zone and we expect selling interest to emerge around it again. If not, a continuation towards the 1.1910 resistance will follow.
- From EU, Services Sentiment, Business Climate, Industrial Confidence and Economic Sentiment Indicator are due at 10:00 am. From Germany, HICP and CPI figures will follow at 01:00 pm.
- From US, GDP figures and Personal Consumption Expenditures will be published at 01:30 pm, followed by Pending Home Sales and Fed’s Yellen Speech at 03:00 pm.
US dollar rebounded against the swiss franc as well for the last 24 hours and the price action is now above the 20 EMA. If the bulls will continue to keep the price above the EMA, a bottoming formation could develop further and drive the price on the upside. Only a clear break below the 20 EMA could suggest that selling pressure resumed impulsively and a new leg down will follow then.
Thus far, we are above the 20 EMA for almost 20 hours, which suggests the sellers do not manage to regain control over the order flow. If the upside will extend, we expect the price action to head into 0.9868 and 0.9880 resistance levels.
On the downside, 0.9625 and the 20 EMA should be the first significant support zone, where buying might emerge again. A break below will expose 0.9802 and 0.9792.
- From Switzerland, UBS Consumption Indicator is due at 07:00 am, followed by Zew Survey – Expectations at 09:00 am.
Cable had a choppy performance yesterday, with the price breaking below the 4h chart after a decently long time and then with a new surge on the upside, that erased all the losses and made a new weekly high. Since the price action is back above the 20 EMA, that suggests the bulls are still in control and the upside could continue further. If yesterday move will turn out to be an exhaustion, a retracement lower will follow.
As long as we are above the EMA, we expect the bulls to put pressure on 1.3382 resistance level, while if a breakout above it takes place, 1.3407 and 1.3426 could follow afterwards.
On the downside, is sellers resume, the EMA and 1.3322 level are expected to act as a support zone, while a new break below the EMA could open more space towards 1.3276 and even towards yesterday low.
- From UK, Consumer Credit, Mortgage Approvals, and Money Supply figures are due at 09:30 am GMT.
Dollar-yen managed to break above the 20 EMA and thus far encountered resistance around the 111.66 level, where we’ve seen rejections at the end of last week. From a longer-term perspective, we are still well below the trend line and so far the bullish momentum is not strong enough to suggest an impulsive surge on the upside could follow. We expect the price to be under pressure in the short-term, as some uncertainty over the US tax code vote could emerge.
Technically speaking, as long as the price will continue to be above the EMA, buyers could try to break above the 111.66 resistance level again. If they manage to do that, a continuation towards 111.88 and 112.15 seems pretty likely.
On the downside, the EMA could act as support, while a break below it will open more ground towards 111.09 and 110.90, where buyers reacted in the past.
The Aussie continued to retrace lower and managed to reach the trend line again a few hours ago. As we mentioned last week as well, since there was a bearish trend in play for a decently long time, the bullish surge was regarded as a new opportunity to get short, thus resulting the retracement lower we’ve seen recently. Looking ahead, the trend is expected to play a major key in determining the future direction.
If the bulls will manage to keep the downside limited below it, a new leg up could start and head towards 0.7624 or 0.7644, where the bulls had been capped recently.
On the downside, a continuation below the trend line, will suggest the selling pressure could drive the price towards 0.7555 and 0.7536, where the bullish leg had started.