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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Daily Forex Technical Strategy Mon 25 Nov

Article By: ,  Financial Analyst
November 25, 2019 3:42 AM

EUR/USD – Broke below 1.1050, down move validated


click to enlarge chart

  • The pair has staged a breakdown below the lower limit of the 1.1050 neutrality zone on last Fri, 22 Nov as per highlighted in our previous report (click here for recap).
  • Flip to a bearish bias in any bounces below 1.1050 key short-term pivotal resistance (former minor range support from 20/22 Nov 2019 & the 61.8% retracement of the recent slide from 22 Nov high to today’s 25 Nov Asian session current intraday low of 1.1014) for a further potential push down to target the next near-term supports at 1.0990 and 1.0940 (also the lower boundary of the minor descending channel from 31 Oct 2019 high).
  • However, an hourly close above 1.1055 negates the bearish tone for a push up to retest 1.1090 (minor range top since 06 Nov 2019 high & close to the upper boundary of the minor descending channel).

GBP/USD – Failure bullish flag breakout, minor corrective slide reinstated


click to enlarge chart

  • The pair has broken below the 1.2880 key short-term support that has invalidated the prior minor “bullish flag” breakout triggered on 18 Nov 2019.
  • Flip to bearish bias below 1.2975 key short-term pivotal resistance for a further potential corrective slide to target the next near-term support at 1.2700 (former minor congestion area of 11/16 Oct 2019 & 38.2% Fibonacci retracement of the previous rally from 09 Oct low to 21 Oct 2019 high) with maximum limit set at 1.2570.
  • However, a break with an hourly close back above 1.2975 revives the bullish tone for another round of impulsive upleg sequence to target the next intermediate resistance at 1.3210/3240 (3 Apr/03 May 2019 swing high area & Fibonacci expansion).

USD/JPY – Churning remains in progress


click to enlarge chart

  • The pair has continued to churn within the medium-term bearish “Ascending Wedge” range configuration in place since 26 Aug 2019 low with mix elements now.
  • Prefer to turn neutral now between 109.05 and 108.25 where bears need to have a break with an hourly close below 108.25 to trigger a bearish breakdown to target the next supports at 107.90 follow by 106.60 next. On the flipside, an hourly close above 109.05 sees a push up to retest the recent 08 Nov 2019 swing high of 109.50 and even the upper boundary of the Ascending Wedge at 110.25/60 (also the former major ascending support from Jun 2016 low).

AUD/USD – Bearish tone remains intact


click to enlarge chart

  • No change, maintain bearish bias below 0.6845 key short-term pivotal resistance for a retest on the recent 14 Nov 2019 minor swing low area of 0.6770 and a break below it reinforces a further potential drop to target the next near-term support at 0.6720 (09/16 Oct 2019 swing low areas & lower boundary of the minor descending channel in place since 05 Nov 2019 high).
  • However, a clearance with an hourly close above 0.6845 negates the bearish tone for squeeze up to retest 0.6900/6930 (31 Oct/05 Nov 2019 swing high & the major descending channel resistance from 03 Dec 2018 high).

Charts are from eSignal


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