empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

20.11.202010:51 Forex Analysis & Reviews: Trading recommendations of EUR/USD and GBP/USD pair on 11/20/20

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Exchange Rates 20.11.2020 analysis

The euro showed short-term speculative interest yesterday, which resulted in the opening of a sell order from the level of 1.1830. However, this certainly failed to bring the proper profit. A buy order, in turn, was opened from the level of 1.1860, which closed with a profit.

In terms of the economic calendar, there were no important statistics that were published in Europe, but in the United States, weekly data on the labor market was released regarding applications for unemployment benefits. Here, the volume of repeated applications continued to decline, which signals labor market recovery relative to the spring collapse.

The US dollar received local support at the time the statistics were published, but speculators realized a little later that the initial trades for benefits came out worse than the forecast. This resulted in speculative growth. The market reaction is highlighted in red and green ellipses on the trading chart.

  • Repeated applications for benefits fell by 429 thousand, that is, from 6 801 thousand to 6 372 thousand.
  • Initial applications turned out to be worse than forecast. It increased by 31 thousand, instead of the expected decline of 24 thousand.

What was happening on the trading chart?

The quote initially showed a downward interest from the level of 1.1850, with a local low of 1.1816, where positions for sale were opened. There was a stop in this local low, followed by a reversal, where the quote initially returned above the level of 1.1850 and then headed towards the November 18 high completely.

Exchange Rates 20.11.2020 analysis

Considering the economic calendar, none of the statistical data from Europe and US are worthy of attention. Therefore, traders will pay attention to technical analysis, as well as information flow based on hot topics such as COVID-19, Brexit, and Trump-Biden prolonged political controversy.

For the technical analysis, it was observed that there was an immediate decline in the volume of buy positions, which led to a price reversal after the quote reached the level of 1.1890.

The natural basis associated with the level of 1.1890 has been looking for market participants for a long time. The nearest points of interaction between the price and the area were observed last November 17 and 18.

We can suggest that if the expectations associated with the natural basis of the level of 1.1890 coincide, the quote will decline to the limits of 1.1850-1.1825 again.

Exchange Rates 20.11.2020 analysis

The pound failed to keep the previously set decline from the resistance level of 1.3300 yesterday. As a result, the quote found another pivot point in the coordinate area of 1.3200.

What was published on the economic calendar?

The same US labor market data, which initially favored the strengthening of the US dollar, and then sharply turned the rate from 13:30 UTC+00 was published. Just like in the EUR/USD pair, a similar reaction was observed, but with one difference, the dynamics was higher.

In addition to this news background, UK's volume of retail sales data was published, where a slowdown from 4.7% to 4.2% is expected. However, an acceleration was recorded from 4.6% to 5.8%.

From a technical analysis viewpoint, it is noteworthy that the growth during the Asian session led to another price approach to the resistance level of 1.3300, which affected the volume of buy positions in terms of reduction.

We can assume that if the price returns to the range of 1.3225/1.3235, it will positively affect sellers, which will increase their chances to break through the 1.3200 coordinate.

The price development along an upward course is limited by the resistance level of 1.3300. In order to change the schedule of forces, the quote needs to consolidate above the level of 1.3320 on a four-hour time frame.

Exchange Rates 20.11.2020 analysis

Gven Podolsky
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off