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EUR/USD Mid-Session Technical Analysis for November 28, 2019

James Hyerczyk

The Euro is trading slightly higher against the U.S. Dollar on Thursday in muted price action due to the U.S. Thanksgiving holiday. The major U.S. banks are off for the holiday, leading to an extreme drop in trading volume. We could see a similar trade on Friday. Helping to boost the single-currency was a report showing a rebound in Euro Zone sentiment in November.

At 13:57 GMT, the EUR/USD is trading 1.1009, up 0.0011 or +0.10%.

Reuters reported on Thursday that Euro Zone economic sentiment rebounded more than expected in November thanks to more optimism in the key services sector and a better mood in industry ad among consumers, data from the European Commission showed.

The Commission’s monthly survey showed economic sentiment in the 19 countries sharing the Euro rose to 101.3 points this month from 100.8 in October, beating Reuters consensus estimates of a rise to 101.0.

Sentiment in the services sector, which is responsible for some two thirds of Euro Zone gross domestic product, rose to 9.3 from 9.0 in October while the mood in industry improved to minus 9.2 this month from minus 9.5.

Sentiment among consumers rose to minus 7.2 from minus 7.6 and in retail trade to minus 0.2 from minus 0.9.

The Commission survey also showed that inflation expectations among consumers fell in November to 19.4 from 21.5 in October, away from the long-term average of 22.5.


Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.0989 will reaffirm the downtrend. The main trend changes to up on a move through 1.1097.

The main range is 1.0879 to 1.1179. The EUR/USD is currently trading inside its 50% to 61.8% retracement zone at 1.1029 to 1.0994. The recent price action suggests this zone is controlling the near-term direction of the Forex pair.

The short-term range is 1.1176 to 1.0989. Its retracement zone at 1.1083 to 1.1104 is resistance.

Daily Technical Forecast

Based on this week’s price action and the current price at 1.1009, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 1.0997 and the main Fibonacci level at 1.0994.

Bullish Scenario

A sustained move over 1.0997 will indicate the presence of buyers. If this move creates enough upside momentum then look for a move into the 50% level at 1.1029. This is a potential trigger point for an acceleration into a downtrending Gann angle at 1.1047.

Bearish Scenario

A sustained move under 1.0994 will signal the presence of sellers. The first target is the main bottom at 1.0989, followed by a long-term uptrending Gann angle at 1.0984. The latter is a potential trigger point for an acceleration to the downside with the next target angle coming in at 1.0932. This is the last major support angle before the 1.0879 main bottom.

This article was originally posted on FX Empire