Forex Trading Library

Intraday Technical Analysis 23 November

Canada's inflation and retail sales on the tap

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The markets were seen trading subdued on Thursday as the U.S. session was closed due to Thanksgiving holiday. The U.S. Dollar was seen trading slightly weaker. On the economic front, data was mostly quiet.

The ECB released its monetary policy meeting minutes from the October meeting. No major surprises were in store. The central bank reiterated its stance to end its QE program this end of the year.

The Eurozone consumer confidence report showed a decline to 4 from -3 a month ago.

Market sentiment for the GBP was boosted by reports that the U.K. and the European Union have agreed in principle to a Brexit deal draft.

The economic calendar is somewhat busy today. The German final quarterly GDP report is due which is expected to confirm that the economy fell 0.2% in the third quarter of the year.

This is followed by the flash manufacturing and services PMI covering, France, Germany, and the Eurozone. Overall, manufacturing and services PMI are expected to remain broadly stable.

The NY trading session will see Canada’s inflation and retail sales figures coming out. Headline CPI is forecast to rise 0.1% on the month while retails sales are expected to increase 0.1% which could reverse the declines from the month before.

EURUSD intraday analysis

EURUSD (1.1415): The Euro currency maintained its lead against the greenback as the EURUSD posted modest gains. Price action has been trading rather flat below the resistance area of 1.1435 – 1.1460 level. A breakout above this level is required for the Euro to post further gains. The next upside target is sen at 1.174 – 1.1718 level. To the downside, a decline could push the EURUSD toward 1.1315 – 1.1300 level. Establishing support at this level could potentially mark a bottom in place for the EURUSD.

GBPUSD intraday analysis

GBPUSD (1.2882): The GBPUSD was seen turning a bit volatile on the Brexit headlines. Price action posted a strong reversal near the support area of 1.2808. However, in the medium term, we expect the sideways pattern to be maintained in the currency pair. As the lower support level is yet to be tested, we expect the GBPUSD to be at risk of testing 1.2683 level of support. To the upside, the gains are limited to the 1.3086 level of resistance.

XAUUSD intraday analysis

XAUUSD (1228.33): Gold has been gradually inching higher after clearing the minor resistance level at 1223.50. Price action is likely to continue to the upside with the target level of 1238 being tested in the near term. Alternately, any reversals are likely to see the recently breached resistance level of 1223.50 being tested. A decline below this level could push gold prices down to 1213.50 level which is pending a retest of support.

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