Friday, November 22, 2019

EURUSD Positive if breaks above 1.1170

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Currency

Currency

Comodities

Comodities

EUR USD

Positive if breaks above 1.1170

EUR USD

The Euro traded in the red against the US Dollar yesterday and finished at 1.1059, after nudging a low at 1.1052. However, losses were limited, as the Eurozone’s consumer confidence index rose more than expected in November. Presently, the pair is trading with a slightly positive tone on the 1H chart, ahead of key economic releases across the Eurozone and a speech by the European Central Bank's President Christine Lagarde, due later today. Moreover, a potential signal line crossover from below by the MACD indicator, further elaborates the positive outlook. Important resistance is observed at the 1.1095 level, followed by the 1.1130 and 1.1170 levels. A surge above the latter might lead to positivity in the pair. Conversely, key support is placed at the 1.1030 level, followed by the 1.1000 and 1.0965 levels.

Dow Jones

Bearish if breaches below 27525

Dow Jones

The Dow Jones index traded lower for the third straight session yesterday, led by losses in consumer discretionary, financials and technology sector stocks. Moreover, Procter & Gamble Co., Boeing Co. and Walgreens Boots Alliance Inc. emerged as the top losers in the DJIA index. Currently, the index is trading with a bearish tone on the 1H chart, hinting at possible negative momentum in the coming session. Additionally, the MACD indicator is tranquil below its centreline, further affirming the above stance. Immediate support is located at the 27680 level, followed by the 27600 and 27525 levels. A breach below the latter might lead to further bearishness in the index. Meanwhile, important resistance is aligned at the 27850 level, followed by the 27925 and 28010 levels. A surge above the latter might trigger positive momentum in the index.

GBP USD

Intraday stance - Positive

GBP USD

The Pound traded in the negative territory against the US Dollar yesterday, after data showed that the UK’s public sector borrowings touched its highest level since 2014 in October. As of now, the pair is trading with a positive showing on the 1H chart, ahead of the UK’s manufacturing and services PMI data, due later today. Moreover, the MACD indicator is about to cross its signal line from below, further supporting the positive view. Crucial resistance is positioned at the 1.2950 level, followed by the 1.2980 and 1.3020 levels. A sustained break above the latter might lead to bullishness in the pair. On the flipside, key technical support is seen at the 1.2880 level, followed by the 1.2850 and 1.2815 levels. A move back below the latter might trigger further bearish momentum in the pair.

FTSE 100

Bearish if breaches below 7135

FTSE 100

The FTSE 100 index declined for the second straight session yesterday, weighed down by losses in financial, mining and banking sector stocks. Moreover, shares of Johnson Matthey declined after reporting a drop in its half-yearly profit. On the 1H chart, the short-term EMA has crossed the long-term EMA from above, hinting at likely bearish momentum in the coming session. Adding to it, the MACD indicator is placed below its centreline, further validating the above outlook. Important support is situated at the 7200 level, followed by the 7170 and 7135 levels. A breach below the latter might trigger further bearish pressure on the index. On the contrary, key resistance is observed at the 7270 level, followed by the 7310 and 7340 levels. A sustained break above the latter might lead to positivity in the index.

USD JPY

Positive if breaks above 109.60

USD JPY

Yesterday, the US Dollar started the session against the Japanese Yen on a negative note, as the US initial jobless claims touched a 5-month high in the last week. However, losses were reversed, after the US existing sales rose at its fastest pace in 2 years in October. Presently, the pair is trading with a positive tone on the 1H chart, ahead of the US manufacturing and services PMI data, due later today. Also, the MACD indicator is tranquil in its positive territory, further elaborating the above stance. Immediate resistance is observed at the 108.95 level, followed by the 109.25 and 109.60 levels. A surge above the latter might lead to further strength in the pair. On the other hand, crucial support is located at the 108.30 level, followed by the 108.00 and 107.65 levels.

GOLD

Intraday stance - Weak

GOLD

The safe-haven commodity traded with a bearish bias in the previous session and closed at $1463.60, as a stronger US Dollar dented the demand appeal of the precious metal. As of now, the yellow metal is trading with a slightly negative tone on the 1H chart, hinting at a weak technical picture. Immediate support is situated at the $1469 level, followed by the $1466 and $1462 levels. A move back below the latter might trigger further acceleration to the downside. However, a potential signal line crossover from below by the MACD indicator, suggests at likely recovery over intraday basis. Key technical barrier is aligned at the $1475 level, followed by the $1478 and $1482 levels. A break and stability above the latter might lead to upside momentum in the precious metal.

Crude Oil

Bullish if breaks above $65.30

Crude Oil

The Brent Crude traded in the green in the last session and closed at $63.97, following reports that the OPEC and its affiliates are planning to extend oil output cuts until mid-2020. At present, the commodity is trading above its short-term and long-term EMAs on the 1H chart, hinting at possible bullish momentum in the coming session. Immediate resistance is positioned at the $64.20 level, followed by the $64.80 and $65.30 levels. A clear break above the latter might trigger further bullishness in the commodity. However, a recent signal line crossover from above by the MACD indicator, suggests that the upside might remain limited. Crucial support is located at the $63.00 level, followed by the $62.50 and $61.90 levels. A breach below the latter might lead to bearish momentum in the Brent Crude.