Weekly Forex Technical Outlook – 24th November

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EURUSD (1.06): The Single currency has been in a steady decline for nearly two months in a row and prices are trending lower gradually. Yesterday’s price action resulted in a doji candlestick pattern after a brief touch to the lows at 1.0592. At the same time, the declines off 1.0977 support continues to show a bearish divergence to the Stochastics, which points to a correction in the near term. There is a minor resistance near 1.0812 region, which if broken could pave way for a test to 1.0977 in the near term. To the downside however, support at 1.05645 remains to be tested. A decline to the 1.05645 low would mark a perfect bounce as prices could post a correction back to 1.0812 followed by 1.0977 region. The median line plotted on the EURUSD chart makes for a confirmation on break of the median line.

EURUSD - Daily Chart, 24/11
EURUSD – Daily Chart, 24/11

GBPUSD (1.51): GBPUSD posted a lower high at 1.533 after touching down to a new lower low at 1.505 on 6th November. The correction to 1.533 was marked by multiple confluence of resistance levels. Price has closed below the support/resistance level at 1.5215 – 1.5178 region. While another test to this resistance is expected, the bias remains to the downside with GBPUSD trading within the falling price channel. The impending test of support near 1.4992 is very likely but a bounce off the 1.50 psychological level could keep prices support for a short while.

GBPUSD - Daily Chart, Test to 1.50 likely
GBPUSD – Daily Chart, Test to 1.50 likely

USDJPY (122.56): USDJPY’s price action remains inconclusive at this point. After the minor bull flag pattern that was formed, prices stalled near 123.3 resistance followed up with a bearish engulfing pattern. The upside bias still remains as long as prices are supported above 122.55 which marks the bull flag’s break out level. A close below 122.55 could however invalidate the bullish bias and USDJPY could decline to 121.46 support. The daily charts so far shows two days of doji candlesticks being formed after the bearish candlestick last Thursday, 19th November. A bearish close today could however shift the bias to the downside. To the upside, only a close above 123.3 on the daily could be seen as a weak bullish signal to the upside.

USDJPY - Prices undecided
USDJPY – Prices undecided

USDCAD (1.33): Prices are back to the 1.3336 level of resistance, the previous highs made in September this year. However with the yearly highs at 1.345 staying untouched at this moment, USDCAD could be looking to move to the downside. Prices have been consolidating within 1.345 – 1.326 levels and this could potentially signal a strong break out with the bias being mixed. A break above 1.345 could see USDCAD attempt to post fresh highs while a break out blow 1.326 could see a decline to 1.311. Overall, in the long term USDCAD remains positioned to the upside and this view could change on break below 1.3114.

USDCAD - Bullish upside prevails
USDCAD – Bullish upside prevails

USDCHF (1.01): USDCHF looks to have exhausted the bullish moment with the consolidation above 1.0125 seen for the past four days. With prices failing to break higher and the confluence with the Median line, USDCHF could be looking to post declines in the near term. Support at 1.0079 is the most immediate support that could keep prices biased to the upside. In the event of a break below 1.0079, a decline to lower support at 0.9941 remains a possibility.

USDCHF - Potential correction to support
USDCHF – Potential correction to support

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