By Orbex
The markets were seen trading relatively subdued heading into the Thanksgiving holiday in the U.S. Data showed that building permits rose 1.26 million on the month matching estimates while housing starts also rose 1.23 million, matching estimates.
There was some volatility for the pound sterling. Spain announced that it would vote no against the Brexit draft citing the outstanding issue over Gibraltar. The sterling’s reaction was, however, a bit muted.
Data from the Eurozone is quiet with not many releases in store. The NY trading session will see the U.S. durable goods orders report coming out. Core durable goods orders are forecast to rise 0.4% on the month. However, headline durable goods orders are expected to fall 2.2% on the month.
Later in the day, the U.S. existing home sales report is due. Forecasts point to 5.20 million increase marking a slight gain from the month before.
EURUSD intraday analysis
EURUSD (1.1374): The EURUSD formed a bearish engulfing on the daily chart, and this coincides with the reversal off the resistance area on the 4-hour chart. The declines could potentially push the EURUSD down to 1.1315 – 1.1300 level of support. Establishing support at this level would mark a retest of the breakout level. Therefore, we could expect to see a rebound in price. This could also potentially mark an inverse head and shoulders pattern with the neckline resistance seen at 1.1435 – 1.1460 level.
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GBPUSD intraday analysis
GBPUSD (1.2790): The GBPUSD is trading a bit subdued as price action repeatedly tests the support area of 1.2808 level. A reversal off this level could, however, keep price action range bound. To the downside, the untested support at 1.2683 is expected to be tested at some point. However, with the Stochastics in the oversold level, there is a possibility of a rebound in price action.
XAUUSD intraday analysis
XAUUSD (1220.60): Gold was consolidating near the resistance level of 1223.50 with price action briefly spiking to post a fresh two week high. However, failure to establish support has pushed the price back below the price level of 1223.50. Currently, the 4-hour 20-period EMA is seen holding the declines. However, a break below the EMA could trigger gold prices to extend declines to the temporary support at 1213.50. As long as this support holds, gold prices could attempt a rebound. Failure to hold the declines at 1213.50 could trigger further declines down to 1204.08.
By Orbex
