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18.11.202112:38 Forex Analysis & Reviews: Technical analysis recommendations of EUR/USD and GBP/USD on November 18, 2021

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EUR/USD

Exchange Rates 18.11.2021 analysis

The encounter with the monthly support (1.1290) provoked a slowdown and a daily rebound from the level. The confirmation and development of the impulse can be implemented in a full-fledged upward correction, the pivot point of which is the unification of several resistance levels at once in the higher timeframes, led by the monthly borders of 1.1447-74-92 (Ichimoku cloud + medium-term trend). If the slowdown fails to become something big for the bulls, then the update of yesterday's low (1.1264) and the continuation of the decline will return the relevance to the downward pivot points (weekly + monthly target for the breakout of the Ichimoku clouds).

Exchange Rates 18.11.2021 analysis

There is currently an upward correction in the smaller timeframes. The central pivot level (1.1305) has moved to the bullish side. The next major upward pivot point is the weekly long-term trend (1.1390), with intermediate resistances along the way at 1.1345 and 1.1373 (classic pivot levels). As for the bears, their main task in the current situation is to restore the downward trend (1.1264). In this case, the benchmarks for the continuation of the decline can be noted at 1.1237 (S2) - 1.1209 (S3).

GBP/USD

Exchange Rates 18.11.2021 analysis

The bulls are trying to conquer the level of 1.3411. They managed to further increase yesterday, and as a result, they are now testing the strength of the daily levels of 1.3479 (Tenkan) and 1.3536 (Fibo Kijun). Slightly higher are more important resistances that combine their forces in the area of 1.3571 - 1.3601 (historical levels + weekly short-term trend + daily medium-term trend). The breakdown of the indicated resistances will allow us to talk about further opportunities and prospects for the bulls. The completion of the upward correction and the pair's return to the area of 1.3411, as well as the update of the low (1.3352), will return bears to the market.

Exchange Rates 18.11.2021 analysis

The bulls have risen above the key levels and continue above, due to which they now have the main advantage in the smaller timeframes. Currently, the resistances of the classic pivot levels (1.3521 - 1.3557 - 1.3620) serve as intraday upward pivot points. The nearest support levels are now set at the borders of the key levels of 1.3458 - 1.3425 (central pivot level + weekly long-term trend). A consolidation below will change the current balance of power and require a new assessment of the situation.

***

Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.

Evangelos Poulakis
Analytical expert of InstaForex
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