Daily Price Action
Shares

Weekly Forex Forecast (November 26 – 30, 2018)

Shares

I flipped from relatively bearish the EURUSD to bullish in mid-November.

The aggressiveness of the bounce at 1.1215 followed by the daily close back above 1.1300 caused me to question my bearish outlook.

In fact, I even went long on November 16th at 1.1335.

That came to an abrupt end on the 20th. Instead of catching a bid at 1.1430 (new support), the pair closed the day at 1.1369.

I exited my long position as soon as sellers took out the November 19th low.

I figured there was a very good chance sellers were on their way to carving a bearish engulfing day on the 20th. Sure enough, they did.

My early exit left me with a decent profit but it wasn’t what I was looking for.

But as every good trader knows, flexibility is essential in this business.

You have to be able to flip from bearish to bullish and back again in the blink of an eye.

If you can’t, you’ll be left hoping for an outcome the market doesn’t care to deliver.

So what’s the plan for EURUSD this week?

It seems the single currency is back within its former range between 1.1300 support and 1.1430 resistance.

There is a slight chance that the price action since late October is an inverse head and shoulders.

However, buyers have their work cut out for them. So for now, that’s an idea I will monitor but I won’t act on as long as the 1.1430 resistance area stands.

I do expect to see buyers put up a fight at 1.1300. Just keep in mind that any buying here is counter-trend.

Below 1.1300 we have the year-to-date low of 1.1215.

IMPORTANT: I use New York close charts so that each day closes at 5 pm EST.

EURUSD support and resistance levels

The GBPUSD continues to be one of the less desirable currency pairs to trade in my opinion.

On the one hand, you have the increase in volatility due to ongoing Brexit rhetoric.

That alone can make trading the pound trickier than usual.

But more importantly is the fact that GBPUSD is technically unattractive.

While the downtrend that began in April is intact, the pair has been sideways since mid-August.

If you prefer trading ranges, the 560-pip range between 1.2700 and 1.3260 might be an option for you.

However, given the series of lower highs this month, I’m not sure how much longer buyers can hold onto the 1.2700 support area.

With that in mind, I have no intention of trading GBPUSD as long as 1.2700 is intact.

If sellers can clear it on a daily closing basis, we may have a short opportunity.

Just keep in mind that the Brexit saga isn’t going away anytime soon.

GBPUSD support and resistance levels

I wrote about CADJPY last week. At the time, the pair had just retested ascending channel support near 84.70.

The idea was to wait for a daily close below the level before considering a short.

As you can see, buyers defended the 84.70 area on Wednesday which means our short idea hasn’t materialized just yet.

But Wednesday’s bounce does offer a clue.

It tells us the market is paying attention to this channel or at least the bottom portion of it.

That’s useful information.

If market participants are treating this level as support, a close below it means any retest will likely attract sellers.

In other words, it would become support turned resistance.

That’s basic technical analysis, but it’s also all you need to do well in this business.

For now, CADJPY needs more time. If sellers can secure a daily close below channel support near 84.80/90, it would open up downside targets.

Those targets include 83.90 followed by 82.30.

The final retesting place following a break below channel support could be the year-to-date low at 80.50.

Save 40% on a Lifetime Membership to Daily Price Action – Ends November 30th!

CADJPY ascending channel on daily chart

On November 12th I discussed a potential short opportunity on EURNZD. Sellers were targeting 1.6570 after breaking below key support at 1.6800.

At the time, the euro cross was trading just above 1.6700. But instead of retesting old support as new resistance, EURNZD bears took the price straight to 1.6570.

Unless you sold as soon as I released that November 12th commentary, you most likely missed the move.

However, as is often the case, we may have a second opportunity.

Notice how EURNZD has recently rebounded from the 1.6570 area. Since then, buyers have managed to claw back 200 pips.

That means the market is now less than 100 pips away from new resistance near 1.6830.

That’s the area I’ll be watching this week. Bearish price action from the 1.6830 resistance area could trigger the next leg lower.

As long as 1.6830 holds as new resistance on a daily closing basis, the breakdown I mentioned on the 12th is in play.

Are you using the wrong charts? If the daily time frame doesn’t close at 5 pm EST, you aren’t using New York close charts which are essential for trading price action.

Key support comes in at 1.6570. A daily close below that would expose the September 2017 low at 1.6150.

That 1.6150 level, by the way, is the final target for this upward sloping flag.

At nearly 700 pips, the target offers plenty of room to run, but will also require immense patience if you intend to hold short for several weeks.

EURNZD new resistance area

Gold bulls have managed to keep their heads above water this month. At least so far.

Back on November 14, I discussed why the 1200 handle was so significant.

Not only was it support that extends from the year-to-date low, but it was also the bottom of a short-term ascending channel.

That channel, by the way, could be a bearish flag pattern. If it is, the target could be as low as the 2015 low of 1045.

Be sure to review my post from November 14 for all the details.

Unsurprisingly, gold bulls stepped in at 1200. They even closed the market back above 1215 on the 16th.

One thing they haven’t done is take out the October high at 1243.

As long as that high stands, the targets from my November 14 post shouldn’t be dismissed.

I’m not claiming this is a continuation pattern just yet. Sellers need to take out channel support below 1215 first.

But I’m also not ready to rule it out.

For the week ahead, key support comes in at 1215 while resistance can be found up near 1235.

IMPORTANT: I use New York close charts so that each day closes at 5 pm EST.

Gold daily chart with channel

Leave a Comment:

42 comments
Awina says

Wow thanx sir nice insights… Can you also touch base on USDJPY forecast please what’s your view

Reply
    Justin Bennett says

    See link below. Not much to do in my opinion.

    https://dailypriceaction.com/daily-setup/usdjpy-sellers-need-to-hold-113-00

    Reply
    BC ZimTrader says

    I think the USDJPY will go up above 114 as long as the US equities continue to fall as the Japanese Yen strenthens due to it being a sure hedge haven! Same applies to the Swiss Franc, CHF. But the Japanese Yen strenthens also on the back of decline in oil prices.

    WhatsApp +263 718 165 622 for more chats! Thanks.

    BC in Gweru City Zimbabwe

    Reply
      Oluchukwu says

      If JPY strengthens, shouldn’t the USDJPY fall?

      Reply
    Justin Bennett says

    You’re welcome.

    Reply
Khurram says

Hello Justin, thanks for the usual informative update. I have tried to reach out to you a couple of times via the contact tab on the site but did not receive any feedback/ response. How can I contact you?

Reply
    Justin Bennett says

    I’ll get back to you this week. The end of last week was a U.S. holiday.

    Reply
Sumantra kumar halder says

Wonderful presentation

Reply
    Justin Bennett says

    Thanks, Sumantra.

    Reply
Uzoma Nnamdi says

Thank you Sir. Always looking out for your analysis every Sunday evening. Happy trading week sir

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Anesu says

Thanks Justin as always. Value your analysis as it is very informative

Reply
    MALVIN says

    Munhu uyu anogona chibaba

    Reply
      Ruvimbo Mukuruva says

      Malvin where are you based? I am in Harare Zimbabwe

      Reply
    Justin Bennett says

    My pleasure. Glad you’re finding it useful.

    Reply
Malvin says

Thank you sir I totally agree with your opinion on The Eurusd…it can bull at anytime..but as you always say it’s a game of probabilities

Reply
    Justin Bennett says

    You’re welcome. EURUSD has been a mixed bag of late.

    Reply
Djtradex49 says

Thank you Jason, for your weekly analyses; they’re very helpful.
Would you care to comment on how you choose the pairs you will discuss every week?
Thanks again

Reply
    Justin Bennett says

    It’s Justin, but you’re welcome. 😉

    I choose them based on recent price action.

    Reply
Jaroslaw Stefaniak says

Great Comments from you Justin. I am very close to making decision to become your all-life customer. So far, many others fx experts promise a lot but give nothing. It looks, you however created a good value for money by means of your professional comments. good job. Jarek Stefaniak/ poland P.S. Welcome to our country

Reply
    Justin Bennett says

    Thanks, Jaroslaw.

    Reply
Jenerali says

the set ups are amazing.. the mind needs to be tamed for patience

Reply
    Justin Bennett says

    Glad you think so. Cheers.

    Reply
Sandar says

I am just a beginner in this business so all of your analysis help me a lot. And I want to know how you see on NZDUSD for this week. Hope you will reply to my comment. Thank you sir.

Reply
    Justin Bennett says

    You’re welcome. I’ll comment on it if I see something develop as always.

    Reply
Godson says

This is really helpful. Words can’t thank you enough my Mentor, remain blessed.

Reply
    Justin Bennett says

    Cheers. Pleased to hear that.

    Reply
Jaya says

Any prediction for uscad

Reply
    Justin Bennett says

    Nothing at the moment.

    Reply
Jaya says

Justin, I sick an tired waiting for this USCAD to reach down, its floating since last week 1.3150, u think will reach here

Reply
    Pierre Mifsud says

    You have to be very patient my friend….patience is a virtue in trading….I know what you feel…..USD is getting stronger as the weeks roll by….check the DXY on the monthly i.e dollar index and it is approaching 99.13

    Reply
Pierre Mifsud says

Yes there is always a reason for changing your thoughts….lately the market direction has been very bleak in many pairs

Reply
    Justin Bennett says

    The year-end holiday season is upon us.

    Reply
kradli says

Thanks Justin. How about for the oil? still going bearish for the week.

Reply
    Justin Bennett says

    You’re welcome. No comment for now.

    Reply
derrick says

thank you very much sir for that good knowledge

Reply
Takawira says

Great analysis

Reply
Phil Hosins says

Justin, I am still waiting for access to the members area having paid the subscription 10 days ago!

Reply
    Justin Bennett says

    Phil, the invitation email was sent to you the same day you paid.

    Reply
Sumantra kumar halder says

Wonderful analysis

Reply
    Justin Bennett says

    Thanks, Sumantra.

    Reply
MARAN ATHA says

UsdSek please ?

Reply
Add Your Reply