2017-11-23
Wave summary:
We continue to look for a break below support at 1.7100 to confirm that a deeper correction in wave ii towards 1.6619 is developing. Short-term resistance is seen at 1.7237 and again at 1.7300. The later will ideally cap the upside for the expected break below support at 1.7100.
R3: 1.7408
R2: 1.7334
R1: 1.7300
Pivot: 1.7100
S1: 1.7058
S2: 1.6916
S3: 1.6805
Trading recommendation:
We are short EUR from 1.7200 with our stop placed at 1.7415.
Intraday technical levels and trading recommendations for EUR/USD for November 23, 2017
2017-11-23
Monthly Outlook
In January 2015, the EUR/USD pair moved below the major demand levels near 1.2050-1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target was projected toward 0.9450.
In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.
In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.
However, the EUR/USD pair has been trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450.
The current bullish breakout above 1.1450 allowed a quick bullish advance towards 1.2100 where recent evidence of bearish rejection was expressed (Note the previous Monthly candlestick of September).
Daily Outlook
In January 2017, the previous downtrend was reversed when the Inverted Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.
As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further bullish advance towards 1.1415-1.1520 (Previous Daily Supply-Zone).
The daily supply zone failed to pause the ongoing bullish momentum. Instead, evident bullish breakout was expressed towards the price level of 1.2100 where the depicted Head and Shoulders reversal pattern was expressed.
If the recent bearish breakout persists below 1.1700 (Neckline of the reversal pattern), a quick bearish decline should be expected towards the price zone of 1.1415-1.1520 (Initial targets for the depicted H&S pattern).
Bearish target for the depicted Head and Shoulders pattern extends towards 1.1350. However, to pursue towards the mentioned target level, significant bearish pressure is needed to be applied against the mentioned zone (1.1415-1.1520).
However, recent price action around the price zone of 1.1520-1.1415 indicated evident bullish recovery. This hinders further bearish decline as long as the recent low around 1.1550 remains unbroken.
Trade Recommendations
The current price levels around 1.1850 should be watched for a possible short-term SELL entry. ( Note the shooting-star daily candlestick of the previous Wednesday).
S/L should be placed above 1.1900. T/P levels to be located at 1.1700, 1.1590 and 1.1500.
Analysis of GBPUSD 23.11.2017
Written by: PaxForex analytics dept - Thursday, 23 November 2017
The price above 20 MA and 200 MA, indicating a growing trend.
The MACD is above the zero line.
The oscillator Force Index is above the zero line.
If the level of resistance is broken, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 1.3340
• Take Profit Level: 1.3440 (100 pips)
If the price rebound from resistance level, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 1.3270
• Take Profit Level: 1.3200 (70 pips)
NZD/USD Intraday technical levels and trading recommendations for November 23, 2017
2017-11-23
Daily Outlook
A recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.
This resulted in a quick bullish advance towards next price zones around 0.7150-0.7230 (Key-Zone) and 0.7310-0.7380 which was temporarily breached to the upside.
Recent bearish pullback was executed towards the price zone of 0.7310-0.7380 (newly-established demand-zone) which failed to offer enough bullish support for the NZD/USD pair.
Re-consolidation below the price level of 0.7300 enhanced the bearish side of the market. This brought the NZD/USD pair again towards 0.7230-0.7150 (Key-Zone) which failed to pause the ongoing bearish momentum.
An atypical Head and Shoulders pattern was expressed on the depicted chart indicating high probability of bearish reversal as long as bearish persistence below the neckline 0.7150 is maintained.
As expected, the price level of 0.7050 failed to offer enough bullish support for the NZD/USD pair. That's why, further bearish decline was expected towards 0.6800 (Reversal pattern bearish target).
If the recent low (0.6817) remains defended by the bulls, a bullish pullback can be expected towards 0.7050 provided that bullish pullback persists above 0.6970 ( Intraday Key-level ).
Otherwise, further bearish decline would be expected towards 0.6680.
Trade recommendations:
If the recent bullish pullback persists towards 0.7050, a valid SELL entry can be offered around there.
S/L should be placed above 0.7100. T/P levels to be placed at 0.6970, 0.6900 and 0.6830.
GBP/USD analysis for November 23, 2017
2017-11-23
Recently, the GBP/USD part has been trading upwards. As I expected, the price tested the level of 1.3337. According to the 30M time - frame, I found a successful test of pivot level at the price of 1.3288, which is a sign that selling looks risky. I also found oversold conditions on the stochastic oscillator, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 1.3363 (pivot resistance 1) and the price of 1.3400 (pivot resistance 2).
Resistance levels:
R1: 1.3364
R2: 1.3400
R3: 1.3480
Support levels:
S1: 1.3247
S2: 1.3170
S3: 1.3130
Trading recommendations for today: watch for potential buying opportunities.
Technical analysis of USD/CHF for November 23, 2017
2017-11-23
Overview:
The USD/CHF pair has dropped from the level of 0.9870 towards 0.9800. Now, the price is set at 0.9831 to act as a daily pivot point. It should be noted that volatility is very high for that the USD/CHF pair is still moving between 0.9831 and 0.9783 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 0.9831 and 0.9870, which coincides with the 38.2% and 50% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the USD/CHF pair is continuing in a bearish trend from the new resistance of 0.9831. Thereupon, the price spot of 0.9831 remains a significant resistance zone. Therefore, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9831, sell below 0.9831 with the first targets at 0.9783 and 0.9743 (the double bottom is seen at 0.9704). However, the stop loss should be located above the level of 0.9870.
Technical analysis of NZD/USD for November 23, 2017
2017-11-23
Overview:
The NZD/USD pair is going to continue to rise from the level of 0.6779 in the long term. It should be noted that the support is established at the level of 0.6779 which represents thedoule bottom on the H4 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.6880. So, buy above the level of 0.6880 with the first target at 0.6943 in order to test the daily resistance 1 and further to 0.6940. Also, it might be noted that the level of 0.6940 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.6779, a further decline to 0.6632 can occur which would indicate a bearish market.
USD/JPY analysis for November 23, 2017
2017-11-23
Recently, the USD/JPY pair has been trading downwards. As I expected, the price tested the level of 111.06. According to the 30M time - frame, I found that price is trading below the pivot level at the price of 111.61. I also found a symmetrical triangle in creation, which is a sign that price is consolidating. My advice is to watch for a potential bearish breakout of the triangle to confirm a further downward movement. The downward targets are set at the price of 110.75 (pivot support 1) and at the price of 110.26 (support 2).
Resistance levels:
R1: 112.09
R2: 112.97
R3: 113.44
Support levels:
S1: 110.74
S2: 110.26
S3: 109.39
Trading recommendations for today: watch for potential selling opportunities.
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