Title: North American Forex Kickoff – A Technical Analysis of EUR/USD, USD/JPY, and GBP/USD for November 28
Author: Greg Michalowski (original content from ForexLive via TradingView)
As the North American trading session begins on November 28, foreign exchange markets are exhibiting early movement indicative of ongoing market themes. With critical data and growing interest rate speculation influencing the dollar, major pairs like EUR/USD, USD/JPY, and GBP/USD are being closely watched by traders for technical signals that may shape trading strategies for the day ahead.
The U.S. Dollar Index has softened slightly with continuing expectations of a dovish Federal Reserve in 2024. Risk sentiment remains cautiously optimistic, while Treasury yields are mixed across maturities. As New York traders take the reins, let’s explore key technical levels and insights driving the most important currency pairs.
Below is a breakdown of today’s technical outlook for EUR/USD, USD/JPY, and GBP/USD, based on current price action and trend structure. All chart analysis and initial commentary are based on the work of Greg Michalowski, as published on ForexLive.com.
EUR/USD Technical Overview
The euro is maintaining a firm tone, continuing its impressive recovery since the lows recorded in early October. Trading above major moving averages, the pair is offering bullish cues, with resistance levels being tested at the highs of recent ranges. Here’s how the pair shapes up following the overnight sessions:
Current EUR/USD Levels:
– Trading at approximately 1.0990
– Intraday high of around 1.0997
– Daily low came in at 1.0964
Key Technical Indicators:
– The 100-hour moving average is found near 1.0940. As of now, the pair remains comfortably above this level, signaling a bullish bias in the short term.
– The 200-hour moving average sits even lower, at approximately 1.0896. This level has not been challenged over recent sessions as buyers stay in control.
– For bulls, continuation above 1.1000 is critical. Not only is it a psychological round level, but it also represents minor swing resistance from last week.
Bulls will be looking for a firm move above 1.1000 to target further gains toward:
– 1.1044: Mid-August swing high
– 1.1065: High from August 15
– 1.1095: Potential target zone before major supply enters the picture
Downside Watch:
Support levels to watch if price starts to reverse include:
– Initial support at 1.0960 (near session lows)
– Followed by 1.0940 (100-hour MA)
– Break below 1.0896 (200-hour MA) would shift short-term bias bearish
While sentiment remains positive for the euro, watch for US data releases, particularly inflation-related indicators, which could quickly swing directional biases as the Fed rate outlook evolves.
USD/JPY Technical Overview
The Japanese yen has shown signs of strength as USD/JPY continues retreating from the 151.90 top established earlier in November. Broad USD weakness and falling bond yields are reinforcing yen gains. This pair operates closely with U.S. Treasury yields, and current market dynamics support a corrective decline.
Current USD/JPY Levels:
– Trading around 147.40
– Session low printed at 147.15
– Overnight high capped near the 100-hour moving average at 147.85
Key Technical Indicators:
– The 100-hour moving average offers immediate resistance at 147.85. The pair has not closed above this level in the past two sessions.
– The 200-hour MA stands further above at 149.00, representing a broader shift point for medium-term players, should the pair turn higher.
– Current trendline resistance originates from the 151.90 high, tracking downward and aligning with the moving averages.
Bearish Momentum Persisting:
– Since topping out earlier this
Read more on EUR/USD trading.