Intraday Technical Analysis 13 November

UK wage growth expected to rise for the fourth consecutive time

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The markets were seen trading reasonably quiet. Economic data on the day saw the release of Japan’s producer price index. Data showed that PPI on the year rose to 2.9%, beating estimates of 2.8%. This was, however, slower compared to 3.0% increase seen the previous month.

The European trading session was relatively quiet. Industrial production in Italy fell 0.2% which comes after a 1.7% increase in the month before.

It is a busy day ahead starting with the release of the final inflation figures from Germany. The German final CPI is expected to show a 0.2% increase on the month.

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Later in the day, the UK’s ILO jobs report is due. The average earnings index in the three months to September is expected to advance 3.0%, rising from 2.7% previously. This would mark a fourth consecutive increase in wages. The unemployment rate is expected to remain steady at 4.0%.

The Eurozone and the German ZEW economic sentiment report is due later and is expected to show a decline on both counts. The declines reflect the weakening sentiment in the Eurozone.

Fed member, Brainard is scheduled to speak later in the day.

EURUSD intraday analysis

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EURUSD (1.1243): The EURUSD was seen extending the declines strongly on Monday as price action slipped to fresh one year lows of 1.1215. The next lower support is seen at 1.1130 which could be tested in the near term. This would mark a retest of the pending multi-year support region. On the 4-hour chart time frame, the common currency could be seen attempting to rebound to the upside. The previously breached support level at 1.1315 – 1.1300 could act as resistance keeping a lid on the gains.

GBPUSD intraday analysis

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GBPUSD (1.2874): The GBPUSD currency pair gapped lower on the day and price action is seen extending the declines lower. The downside target of 1.2808 remains within reach as the GBPUSD could be seen testing this level in the near term. Any rebound is likely to stall near the open gap at 1.2969 level which could be filled. The 20-period EMA on the 4-hour chart is also likely to act as dynamic resistance in this case.

XAUUSD intraday analysis

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XAUUSD (1204.11): Gold prices were seen falling below 1204.08 level of support on Monday. However, the declines could see a short-term rebound in price. Gold prices will need to recover above 1204.08 to confirm the upside retest of 1223.50. A retest of this level for resistance is pending. Alternately, a continuation of the decline to the downside could push gold prices lower toward the next lower support at 1186.60.

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