Technical analysis for this week

The EURUSD pair has been rallying higher after hitting the critical support level at 1.03429 on 1st January 2017.Currently, the pair is heading towards the 200 weekly SMA and most of the leading investors are cautiously waiting on the sideline for the first bearish correction of this pair. The professional price action traders will execute their short orders near the 1.17709 level with bearish price action confirmation signal. the resistive zone 1.17709 -1.1800 is going to provide a huge level of selling pressure which will ultimately drive the price of EURU down in the global market. If the sellers manage to cap the current bullish movement of the EURUSD pair then the first bearish target for this pair would be the support level at 38.2% Fibonacci retracement level (drawn from the low of 1st January 2017 to the high of 23 July 2017).Considering the bears win the race in the 1.17709 -1.1800 zone, the first corrective pattern for this pair will finish after hitting the critical support level at 1.12448.

The cable (GBPUSD) is also showing extreme bullish momentum in the global market from the very beginning of the year 2017.The pair found some solid support after hitting the critical support level at 1.26272 which is also the dynamic 100 day SMA support level. Though the overall sentiment for the GBPUSD pair is strongly bullish most of the investors are expecting a minor correction of the price towards the critical support level at 1.3000.This level is very important for the traders since the overall sentiment will remain strongly bullish as long as this support level holds. The first bullish target for this pair is not the critical resistance level at 1.31586 level which is also the high of 27th July 2017.A daily closing above that level will ultimately lead this pair towards the next critical resistance level at 1.35126.But in order to target the 1.35126 level we a hawkish vote from the British MPC official is required.

The U.S dollar index is currently trading just above the critical support level at 91.00.Most of the leading investors are waiting for the non-firm payroll data release. A strong positive data release will push most of the major rivals lower in the economy. On the contrary, the Aussie dollar is rallying higher against the green bucks and currently testing the critical resistance level at 0.8000.Most of the professional price action traders are cautiously waiting for bearish price action confirmation signal at that level to trade the bearish reversal of this pair. On the contrary, the Kiwi dollar is also trading higher in the global market due to the ongoing economic crisis in the U.S. In the last week the NZDUSD pair has breached the 200 weekly SMA which is a strong bullish threat to the U.S dollar. The next stop for this pair would be critical resistance level 0.77318.The US dollar is also struggling hard against the Canadian dollar. The USDCAD pair is now trading at 11 weeks low and the nearest support for this pair lies at 1.23855.From this level, we might see a recovery attempt in the USDCAD but the overall sentiment still remains bearish for this pair.
See also:
Weekly Forex technical forecast November 19 - 23.
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