Pair EURUSD yesterday formed a new minimum this year at 1.11850. Today the picture is calmer, and the pair is recording smaller gains climbing to the current 1.12190. Thanksgiving is today and tomorrow in America, and the market will be closed during the American session. We can expect less volatility with the US dollar. Bullish scenario:
We need positive consolidation and growth to 1,12500 so that we can recover at least briefly.
We then get support in MA20 and MA50 moving averages.
We expect the next resistance at 1.13000, where the MA200 moving average is waiting for us.
Bearish scenario:
We need negative consolidation and new testing of the zone at 1.12000.
A further drop in the price brought us down to yesterday’s minimum at 1.11850.
If the dollar continues to strengthen and the euro weakens, we will probably see a pair at lower levels on the chart.
GBPUSD chart analysis
Pair GBUPSD continues to consolidate at this year’s low at 1.33155. And because of the holidays in America, we can expect a smaller recovery to higher levels because there will be no activity during the American session. Bullish scenario:
If we support the bullish option, we need a rejection above this support to 1.33500 where there was previous resistance.
If we climb to that zone, we get support in the MA20 moving average.
Breaking above the pair can lead to the next resistance at 1.34000, and the extra pressure at that level creates the MA200 moving average.
Bearish scenario:
We need continued negative consolidation and pressure on the previous lower low.
A break below can lead us to 1.33000 next support zone.
The pair can easily slip even lower to the bottom trend line if the pound doesn’t hold up.
Market overview
British retailers reported an increase in sales growth in November as clothing and department stores saw a large upward sales volume. The results of a survey on distributive trade by the Confederation of British Industry showed on Thursday. The retail balance rose to 39 percent in November from 30 percent in October. Net 56 percent expect sales to increase in December. “Christmas seems to have come early for retailers,” said Ben Jones, a leading CBI economist. “It seems likely that reports of supply chain disruptions have led consumers to go Christmas shopping early,” Jones said. Meanwhile, the balance in the order book fell to 30 percent from 48 percent in the previous month. The survey found that sales prices have been growing rapidly since May 1990, with +77 percent recording an increase. Expectations are to sales grow at a similar pace in December. The German economy grew slower in the third quarter than estimated due to weak investment and exports, and revised Destatis data showed Thursday. Gross domestic product increased 1.7 percent in a row in the third quadrant, instead of 1.8 percent estimated on October 29. Destatis said the improvement of the German economy continued in the summer after GDP grew by 2.0 percent in the second quarter. The expenditure side survey showed that household spending rose sharply by 6.2 percent, while government spending dropped 2.2 percent in the third quarter. Gross fixed capital formation also dropped 2.2 percent from the previous quarter.
