Trading plan for 22/11/2017

Source: Forex Analysis

The market remained calm at night, and limited activity on the day before the US holiday deepened the decline in volatility. USD loses slightly with the strongest movement against JPY. New records on Wall Street were an encouragement to the stock market in Asia. Crude oil rises after data on inventory fall.

On Wednesday 22nd of November, the event calendar is quite busy, but mostly during the US session. During this time the US will release Durable Goods Orders data, Unemployment Claims data, Revised UoM Consumer Sentiment data, Crude Oil Inventories data and at the end of the trading day – FOMC Meeting Minutes.

EUR/USD analysis for 22/11/2017:

The Thanksgiving, like every day of this kind of holiday, brings with you around the Christmas holidays. This means a rather little movement in asset prices and low involvement of investors (especially those in the US). The calendar of events is rich with US data, but it is doubtful that the readings could shake the US Dollar. The comments regarding the political turmoil in Germany has been halting since the beginning of the week, and the recent update suggests that the chances of a Great Coalition are rising. So the potential reason to pull the EUR/USD out of the consolidation was to die before it could have been more serious. USD is generally weaker at the start of Wednesday trading, although more talk about the direction than the scale of moves (0.1-0.2% volatility). Event today’s FOMC Meeting Minutes might not have any impact on the markets as usual.

Let’s now take a look at the EUR/USD technical picture at the H4 time frame. The market bounced from the technical support at the level of 1.1713 after a test of the golden trend line and now tries to rally higher. The market conditions are oversold and the next technical resistance is seen at the level of 1.1821. The key zone to the upside remains between the levels of 1.1856 – 1.1880.

analytics5a153cbf8dfd9.jpg

Market Snapshot: Crude Oil making Double Top?

The price of Crude Oil has rallied towards the local highs at the level of $57.91 after the support at the level of $54.79 held well. Due to the overbought market conditions, the price might reverse anytime now, but it will likely wait for the today’s inventories data later on.

analytics5a153ccab1939.jpg

Market Snapshot: DAX H&S pattern still in progress

The price of German DAX index might be developing a right shoulder of the Head & Shoulders technical pattern as the high at the level of 13,211 was established. The next techncial support is seen at the level of 13,094, but th etarget for the H&S pattern is way lower than this.

analytics5a153cd5c8306.jpg

The material has been provided by InstaForex Company – www.instaforex.com