EURUSD: Candlestick Reversal Pattern Shaping Up

The EURUSD pair traded in the red on Monday, November 30, down 0.33% to 1.1923. With support from crosses, the euro tested the 1.20 level, from which it later slipped 81 pips.

In the European trading session, Brexit news moved the market. During the North American session, a correction in the dollar index was driven by technical factors. Notably, the correction was not attributable to the news flow.

Todays macro agenda (GMT+3)

11:55 Germany: unemployment rate and number of unemployed (November), manufacturing PMI (November)

12:00 EU: Eurozone manufacturing PMI (November)

12:30 UK: manufacturing PMI (November)

13:00 EU: Eurozone CPI (November)

16:30 Canada: GDP (September)

16:45 US: manufacturing PMI (November), 17:00: ISM manufacturing index (November), construction sector spending (October); 17:00 Fed Chairman Powell speech

17:00 ECB President Lagarde speech


Current outlook

Sellers took their time at the outset of the European session, but almost completely pared Friday's gains by the close as EURUSD sank to 1.1923. In two hours, the price action dropped to the trendline (from the low of 1.1801). After a brief correction, the decline picked up momentum to the 67-degree line (1.1920).

In Asian trading, buyers managed to pare 50% of yesterday's losses. Today’s key driver was the aussie, which climbed against the dollar after today’s RBA meeting. At its meeting, the regulator kept its current monetary policy on hold, as well as the parameters of the Term Funding Facility and the government bond purchase program.

Chinese macro data lent additional support to risk assets. The Caixin/Markit Manufacturing PMI for November came in at 54.9 (vs. the 53.5 forecast).

At the time of writing, the euro was trading at 1.1964. A candlestick reversal pattern has taken shape on the daily TF, while the news flow is helping buyers win back losses. They are doing quite well in terms of the trend.

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Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

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