EUR/USD and GBP/USD Forecast - 22 November 2017
The EUR/USD pair went almost nowhere during the trading session on Tuesday by the time it was all said and done. We are essentially hovering above the 1.17 level, which of course was a significant support and resistance level recently. The level was a neckline on the head and shoulders pattern that I have been talking about, and now could offer support as we have broken back above it. I think there are a lot of questions when it comes to the pair, not the least of which will be the inability of the German government to form a coalition. Because of this, I think that we are going to sit sideways, and beyond that, we have Thanksgiving coming on Thursday, so liquidity will slow down. However, I believe that eventually the buyers will get involved, and therefore I like buying dips, or at least until we would break down below the 1.16 level where I think it would drop significantly.
The British pound did very little during the day as well, as the 1.3250 level has offered significant resistance. Because of this, looks as if it is likely to continue to see a lot of resistance just above, but quite frankly I think there is a significant amount of support just underneath. In general, the market should continue to be bullish overall, at least if we can stay above the 1.30 level underneath which I see as the massive support level. We also have the uptrend line that I have marked on the chart, so either way I think that the market will eventually find buyers on those dips, and eventually go looking towards the 1.3650 level above longer term. The next couple of sessions could be reasonably quiet though.