The Analytical Overview of the Main Currency Pairs on 2023.11.10

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.0703
• Prev. Close: 1.0666
• % chg. over the last day: -0.34%

The dollar found support on Thursday on hawkish comments from Fed Chairman Powell, who said policymakers are not confident about raising interest rates enough to bring inflation back to the Fed’s 2% target. Another negative factor for the euro was the dovish comment from ECB Governing Council representative Villeroy de Gallo, who said that the ECB would not raise interest rates again.

Trading recommendations

• Support levels: 1.0657,1.0634,1.0609,1.0557,1.0522,1.0495,1.0483
• Resistance levels: 1.0693,1.0726,1.0768,1.0826

The trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is again trading below the moving averages. The MACD indicator has turned negative, and there is a seller’s pressure inside the day. Buying can be sought from the support levels at 1.0677 or, in case of a deeper decline, from 1.0657. Falling below 1.0634 is undesirable as it will start to change sentiment, and the uptrend will be jeopardized. Sell deals should be considered after testing the resistance level of 1.0693, but with confirmation in the form of sellers’ reactions.

Alternative scenario:

if the price breaks the support level of 1.0522 and consolidates below it, the downtrend will likely resume.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.2281
• Prev. Close: 1.27471.2221
• % chg. over the last day: -0.49%

From the point of view of technical analysis, the trend on the GBP/USD currency pair on the hourly time frame is bullish. At the moment, the pound is correcting to the nearest support levels. The MACD indicator has turned negative, and the price is trading below the moving averages. Buying should be sought from the support level of 1.2214 but with confirmation intraday in the form of buyers’ reactions. Sell trades can be sought after the sellers’ reaction at 1.2268.

Trading recommendations

• Support levels: 1.2214,1.2156,1.2133
• Resistance levels: 1.2268,1.2311,1.2361,1.2427,1.2504

Alternative scenario: if the price breaks the support level of 1.2123 and consolidates below, with a high probability the downtrend will resume.

Alternative scenario:

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev. Open: 150.91
• Prev. Close: 151.34
• % chg. over the last day: +0.28%

Japan’s October Economic Outlook Survey fell by 1.1 to a 10-month low of 48.4, which was weaker than expected. BoJ Governor Ueda said yesterday that the BoJ will not rush to normalize monetary policy, noting that lower-than-desired inflation will be harder to manage given Japan’s current situation. The yen fell to a one-week low against the dollar on Thursday.

Trading recommendations

• Support levels: 151.05,150.60,149.84,149.16,148.96,147.32,147.02,146.76
• Resistance levels: 151.71

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. Quotes are steadily growing, breaking through all resistance levels, while the moving averages are perfectly supporting the movement. The MACD indicator is above zero, but there are signs of divergence. Under such market conditions, buy trades are best considered intraday from the moving average lines with a target to the resistance level of 151.71. There are no optimal entry points for selling right now.

Alternative scenario:

if the price consolidates below the support level at 148.96, the downtrend will likely resume.

The XAU/USD currency pair (gold)

Technical indicators of the currency pair:

• Prev. Open: 1950
• Prev. Close: 1957
• % chg. over the last day: +0.35%

Prices for precious metals showed moderate growth on Thursday. The stock market’s fall on Powell’s hawkish comments made investors look for safer assets. On the other hand, as the dollar grows, government bond yields also rise, which is a negative factor for precious metals. However, economists do not expect gold to fall below $1950 per ounce, so gold will recover with any hints of monetary policy easing by the US Federal Reserve.

Trading recommendations

• Support levels: 1953,1933,1918
• Resistance levels: 1965,1971,1979,1989,2004,2009

From the point of view of technical analysis, the trend on the XAU/USD is bearish. But yesterday, the price formed a false breakdown zone below 1953, and now this zone can become a fundamental balance for the trend reversal. At the moment, the price is trading at the level of the moving average lines, and the MACD indicator has returned to the positive zone. Under these market conditions, buying can be considered intraday from the 1953 support level, but with confirmation in the form of buyer reaction and short targets. For selling, traders can consider resistance levels of 1965 or 1971, but with confirmation in the form of a seller’s reaction.

Alternative scenario:

if the price breaks above the resistance level of 1989, the uptrend will likely resume.