News & Analysis
Eightcap FX technical insights 27/11/17
EURUSD – after a strong rally on Friday price has returned to a potential resistance area. 1.1945 has started to show active sellers with divergence developing on the 18 CCI. Today’s candle is an inside bar, we would like to see today close lower with a new lower low tomorrow to show sellers are committed. As we have a medium-term uptrend any move lower may be limited to 1.1879 -1.1838 area.
GBPUSD – has started to show signs of exhaustion, buyers have made four attempts to break above 1.3335. This level looks set as resistance in the short term. Divergence has developed and is supporting the current resistance. We’re watching for sellers to show they have the imbalance. A lower close is 1st step flowed by a new lower low. As with the EURUSD, price is in a medium-term trend any weakness may be a retracement that retests 1.3267 – 1.3245.
USDJPY – has started to find resistance from 111.65 today, this is a previous low and technically an obvious point for price to stall. Traders should keep an eye on the developing price action. The overall trend is still down and Wednesday’s mover lower still looks like a capitulation low. Tentatively we’re looking for 111.04 level to hold. A break of 111.15 starts put pressure on level 111.04 remaining a potential low.
GBPJPY –price hitting a crossroad? Support continues to hold from 147.85 as price continues to trade in a bearish downward channel. Traders should keep an eye on this pair, pressure looks to be building on both sides. A break of 147.85 support could set up move lower to test 146.94 level. If support continues to hold buyers may force a move out of the current channel.
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