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Technical Analysis for 10/11/2016

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Technical Analysis for 10/11/2016

Technical Analysis for 10/11/2016
November 10
09:00 2016

EUR / USD – EURO US DOLLAR

para1

Donald Trump is the president of the USA – this event was an absolute surprise for the market and its representatives. The victory of Hilary was almost guaranteed. Though, that was not the case.  And the market is absolutely not ready. As it was expected, the reaction was quite harsh.

Thus, a high level of volatility will stay till the end of 2016. That is caused by the change of the policy direction, according to the statements of Donald Trump.

The behaviour of the currency pair EUR/USD completely complies with the forecasts, which had been made in case if Trump wins, though such  course of events was highly improbable.

RSI is moving upwards, the histogram of MACD is also increasing, which means that sellers strengthen their positions.

Quotations are increasing up to the 1,13 level, though «bulls” were not able to keep the euro in this position, and the dollar came back to the position 1,10. Moreover, it is expected that it can fall to the 1,07 level.

GBP / USD – BRITISH POUND DOLLAR

para2

Donald Trump wins the presidential elections in the USA, and as a result, the dollar continues decreasing in value. The market was absolutely not ready to such course of event, and the victory of Trump caused a total confusion, especially in the currency market.

Thus, the currency pair GBP / USD moved up to the 1,2546 level. Such a growth of the British currency was expected, moreover, the production sector of Great Britain has been stable.

But the volatility is very high, that is why it was impossible to keep the price above 1,2500. RSI is still neutral, but is trying to move upwards from the trend line, and it is a clear sign that quotations are going to grow. MACD is decreasing.

The sterling is forecasted to move to the maximum, the target is at the level 1,2600.

Hence, it is very probable that this market trend stays for a while, though, we cannot exclude the probability that the price will test the upper channel line and only then continues falling.

USD / JPY – US DOLLAR JAPANESE YEN

para3

On Wednesday the currency pair USD / JPY was falling due to the president elections in the USA and the intrigue behind them.

During the night session this currency pair was deceasing in value, but at the level 101,16 the currency pair changed the movement direction. Though, after reaching the 103,50 level, it started decreasing again. Then, during the American session, it started growing again. After the breakout the price reached the level 104,50.

MACD is falling, RSI is in the overbought zone, judging from the situation, it is up to move upwards.

The dollar is going to fall, most likely, but after such trades there is a need in the technical market correction. Hence, it is expected that the currency pair will fall to the 104,00 and even to the 103,50 level.

The yen is too volatile, as investors are looking for a safe currency. The Japanese government insists that in case of need, all measures will be taken to control the situation in the market. Nevertheless, it doesn’t matter what is announced, it takes time to stabilize the situation.

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