The legend in the InstaSpot team!
Legend! You think that's bombastic rhetoric? But how should we call a man, who became the first Asian to win the junior world chess championship at 18 and who became the first Indian Grandmaster at 19? That was the start of a hard path to the World Champion title for Viswanathan Anand, the man who became a part of history of chess forever. Now one more legend in the InstaSpot team!
Borussia is one of the most titled football clubs in Germany, which has repeatedly proved to fans: the spirit of competition and leadership will certainly lead to success. Trade in the same way that sports professionals play the game: confidently and actively. Keep a "pass" from Borussia FC and be in the lead with InstaSpot!
On Thursday, the EUR/USD pair rose toward the resistance level of 1.1594–1.1607 but failed to perform either a rebound or consolidation above it. Today, a rebound of quotes from this level will work in favor of the U.S. currency and a slight decline toward the 76.4% corrective level at 1.1517. Consolidation of the pair above the level will increase the likelihood of further growth toward the next resistance level at 1.1645–1.1656.
The wave situation on the hourly chart remains simple and clear. The last completed upward wave did not break the peak of the previous wave, and the last completed downward wave did not break the previous low. Thus, the trend at this time remains "bearish." The bulls have gone on the offensive, but their momentum is still not enough to form a trend. For the bearish trend to be considered completed, the pair must rise above 1.1656.
On Thursday, there was no news background, and traders decided it was better to wait for the next reports and important events before taking active steps. Trader activity has recently remained low, but I believe that in December we will get answers to many questions — in particular, the current state of the U.S. labor market, whether it requires additional support from the Federal Reserve, how quickly inflation is growing, and what decision the FOMC will make at its final meeting of the year. Answers to these questions will help traders shape a long-term strategy, but I believe this strategy has been bullish and will remain bullish for many reasons related to Donald Trump's policies and the Federal Reserve's policy. Thus, today trading should be guided by chart-based signals, but important data will start coming in next week. Bears still dominate the market, but their dominance is mostly a facade.
On the 4-hour chart, the pair reversed in favor of the euro after forming two bullish divergences on the CCI indicator. The pair consolidated above the 38.2% correction level at 1.1538, which allows traders to expect continued growth toward the resistance level of 1.1649–1.1680. No new emerging divergences are observed today on any indicator. A rebound from the 1.1649–1.1680 level will work in favor of the dollar and some decline.
Commitments of Traders (COT) Report:
During the last reporting week, professional traders opened 3,377 long positions and 2,381 short positions. COT reports have resumed after the government shutdown, but for now the data being released is outdated — from October. The sentiment of the "Non-commercial" group remains bullish thanks to Donald Trump and continues to strengthen over time. The total number of long positions held by speculators is now 255,000, while the number of short positions is 137,000.
For thirty-three consecutive weeks, large players have been reducing short positions and increasing long positions. Donald Trump's policies remain the most significant factor for traders, as they may cause many problems of a long-term and structural nature for America. Despite the signing of several important trade agreements, many key economic indicators show decline, and the dollar is losing its status as a "world reserve currency."
News calendar for the U.S. and the European Union:
On November 28, the economic calendar contains four noteworthy entries. The impact of the news background on market sentiment will be weak, as all reports will be released only in Germany.
EUR/USD Forecast and Trader Recommendations:
Selling the pair today will be possible upon a rebound from the 1.1594–1.1607 level on the hourly chart, with a target at 1.1517. Buying could be opened upon a rebound from the 1.1517 level on the hourly chart, with a target at 1.1594. The target has been reached. New buys are possible upon a close above the 1.1594–1.1607 level with a target at 1.1645–1.1656.
The Fibonacci grids are built from 1.1392–1.1919 on the hourly chart and from 1.1066–1.1829 on the 4-hour chart.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.
