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18.11.201910:12 Forex Analysis & Reviews: Technical analysis recommendations for the EUR/USD and GBP/USD on November 18

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Economic calendar (Universal time)

Today, the economic calendar does not contain important news.

EUR / USD

Exchange Rates 18.11.2019 analysis

The pair performed a full upward correction to the daily short-term trend, while meeting a fairly significant and wide resistance zone, formed from various levels of higher time intervals (1.1065 upper border of the daily cloud - 1.1082 daily Kijun + weekly Fibo Kijun - 1.1107 final dead cross day line). The formation of a breakdown of the encountered resistance will change the current balance of forces, since the pair will be able to return to the bullish zone relative to the daytime cloud and eliminate the dead day cross. As a result, prerequisites will appear again for testing the key resistance of this area - the monthly short-term trend (1.1164) and the weekly Kijun (1.1145). The formation of rebound from the resistance encountered and the return of the short-term weekly to the side of the bears (1.1030) will strengthen the chances of a breakdown of the daily cloud (1.0983) and consolidation in the bearish zone.

Exchange Rates 18.11.2019 analysis

At lower time intervals, currently analyzed technical instruments support the development of upward movement. The pair is in close proximity to the first resistance of the classic pivot levels (1.1068), then R2 (1.1083) and R3 (1.1110) can act as resistance within the day. This arrangement of levels corresponds to the benchmarks and expectations of higher time intervals. Today, key support levels on H1 formed a zone responsible for maintaining bullish interests, at 1.1041 (central pivot level) - 1.1023 (weekly long-term trend). Fixation below the zone will change the current balance of forces and will require a new assessment of the situation.

GBP / USD

Exchange Rates 18.11.2019 analysis

Last week, the pound managed to close above the first resistance in the area of 1.2882 (monthly Fibo Kijun + daily Tenkan), thanks to this, the pair started a new test of the weekly cloud resistance (1.2922 Senkou Span A + 1.2959 Senkou Span B) today. The breakdown of the cloud and the restoration of the upward trend, through updating the maximum extremum (1.302), will allow us to consider new prospects for players to increase. The closest reference point, in this case, will be the monthly medium-term trend (1.3167). Failure and return under 1.2882 can significantly affect the further development of events.

Exchange Rates 18.11.2019 analysis

At the lower halves, at the end of last week, key supports coped with the tasks set, defended the interests of the bulls, which helped the players to increase their positions. At the moment, the resistance R1 (1.2924) of the classic pivot levels is being tested for strength, while further interests will be directed to R2 (1.2947) and R3 (1.2976). The key support for today is located at 1.2895 (central pivot level) and 1.2860 (weekly long-term trend).

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)

Evangelos Poulakis
Analytical expert of InstaForex
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