Weekly Technical Outlook: EUR/USD; Market Forecasts for November 16th – November 20th

• Resistance level   1.0896, 1.1017, 1.1086
• Pivot Level  1.0771
• Support Level  1.0709

Technical Analysis

EUR/USD is looking for consolidation pattern from 1.0709 levels and is still in progress with strong support holding these levels. The price action produced a strong bullish engulfing bar reversal candle indicating a shift in momentum to an upside bias with pair closing above trend line. The pair looks for corrective upward bias with price action confirming the bullish movement and the medium term rally can still be seen in progress.

Sustained trading above 1.0771 will confirm strong long term momentum. This will remain favoured case as long as support holds and would pave the way to reach level at 1.0896. A break here can expect levels at 1.1017 and later at 1.1086. Meanwhile, we’re uncertain on the time needed to complete the consolidation and the strength of the rebound. But in any case, break of 1.0709 levels will dampen our bullish view on the pair and should continue with the current momentum to downside and make new lower low.

Outlook remains bullish for week.

Economic

• Consumer Price Index
• ECB President Draghi’s Speech, ZEW Survey Economic Sentiment
• Non-monetary Policy ECB’s Meeting, followed by Monetary Policy ECB’s Meeting Accounts
• Consumer Price Index for the US, FOMC Member Mester Speech, Building Permit
• FOMC Minutes, Initial Jobless Claim, followed by Continuing Jobless Claim

Area of Interest

• Strong support at 1.0709 area and close above the trend line.
• Bullish Engulfing bar reversal with movement strongly holding the support area.
• Price action closed above support level and above trend line indicating shift in momentum.
• At Flip Area on Daily time frame supporting levels.

For more detailed analysis from the author, please visit NoaFX.