Intraday Technical Analysis 27 November

The U.S. Dollar was seen trading firm, riding on the back of Trump’s comments on China. President Trump renewed his rhetoric against China as he said on Monday that he would resume the tariffs against China to 25%. The comments come ahead of the G20 summit where China and the U.S. are expected to hold further talks. Currently, the Trump administration has imposed a 10% tariff which is likely to increase as per his comments.

On the economic front, the ECB President Mario Draghi said that the Central Bank will be ending its QE program. Speaking in Brussels, the ECB President said that the recent economic data was weaker than expected. However, he said that the slowdown was only temporary.

The German Ifo business climate showed that the business sentiment eased to 102.0, which missed estimates of 102.3 and weaker than 102.9 from the month before.

The Bank of Japan released its core CPI report today. Data showed that core inflation rose 0.6% on the year in October. This was slightly better than the estimates which pointed to a 0.5% increase. The day ahead is relatively quiet with mostly second-tier data in the store.

The NY trading session will see the release of the consumer confidence report from the Conference Board. The U.S. consumer confidence is expected to ease to 136.2 following an increase to 137.9 previously. Later, Fed member Bostic will be speaking followed by the Reserve Bank of New Zealand releasing its financial stability report.

EURUSD intraday analysis

EURUSD (1.1337): The EURUSD was seen trading relatively subdued with price action staying within the established range. We expect the downside to prevail as the common currency is most likely to retest the 1.1300 – 1.1315 level of support. A rebound off this level could put the bias back to the upside. A breakout of the resistance level at 1.1435 will be required to confirm the upside bias in price. To the downside, the falling trend line could act as dynamic support.

GBPUSD intraday analysis

GBPUSD (1.2813): Price action in GBPUSD has remained flat with prices trading firmly near the support area of 1.2808. This consolidation is likely to continue in the near term with the risk of a break down below this level. The lower support at 1.2683 will be the likely next target to the downside. To the upside, as long as the support at 1.2808 holds, GBPUSD could be attempting to push to the upside. This could expose the previously established resistance level near 1.3086 as the upside target in price.

XAUUSD intraday analysis

XAUUSD (1226.06): Gold has turned rather flat over the past few daily sessions. Price action is seen consolidating near the support/resistance area of 1223.50 for a while now. This could potentially signal a downside bias toward the 1214 level. A retest of this minor support level could renew the upside bias in gold. If gold prices break down below 1214, then we expect to see further declines pushing the precious metal down o 1204.08. For the near term, the upside momentum looks to be fading.