Past review for the EUR/USD pair
The EUR/USD pair did not only manage to recover from the decline last November 23, but also completely recovered the volume of the euro sales.
But yesterday was the opposite for the euro buyers. Perhaps, the empty economic calendar played in favor of speculators, and possibly the controversial policy of the current US Treasury Secretary Mr. Mnuchin, who plans to transfer $ 455 billion from the stabilization fund to the general treasury fund, which will complicate the life of the new administration.
What happened on the trading chart?
The quotes of the euro/dollar maintained its position above the level of 1.1850, which led to a consistent move towards the 1.1900 mark, where it successfully reached the forecasted coordinates 1.1905, reflecting the local high from November 23.
Following the trading recommendation, there is a high chance to earn approximately 45 points.
Past review for the GBP/USD pair
Yesterday, the pound showed average activity in terms of the daily time frame, but the quote still remained above the level of 1.3300, which positively affected the buyers.
There were no statistics published yesterday, but the media was actively full of statement from British Prime Minister Mr. Johnson regarding the lifting of strict quarantine in the country starting next week.
What happened on the trading chart?
The market was dominated by active upward interest in the morning, where the pound managed to recover to the level of 1.3380. However, the nearby resistance zone 1.3390/1.3400 had a negative impact on the volume of long positions (buy positions) in terms of decline.
As a result, the price reversed towards the level of 1.3300, but then the quote stabilized at the levels of 1.3335/1.3365.
Trading recommendations for EUR/USD pair on Nov 25
Today is one of the busiest days of the current week in terms of the economic calendar.
The publication of the US GDP's second estimate for the third quarter is considered to be the key event today, where the data is expected to be revised for the better and the rate of economic decline will go down from -9.0% to -2.8%. The first estimate indicated a decrease in the rate of decline to -2.9%.
A decline in the rate has a positive effect on the value of the national currency.
The second important event is the weekly data on the US labor market, wherein the volume of applications for unemployment benefits will be published. Their volume is forecasted to decline, which means that the situation on the labor market improves.
- Primary applications are expected to decline from 742 thousand to 730 thousand.
- Repeated applications for benefits may decline by 372 thousand at once – from 6,372 thousand to 6,000 thousand.
The publication of data on the volume of durable goods stocks, where they predicted growth of 0.8% is the third event to be considered. This has a positive effect on industrial growth and consumer activity.
From the point of view of technical analysis, the situation is different. The Euro locally broke through the range level of 1.1900/1.1920 in the upward direction, which could affect buyers positively.
In this case, holding the price above the level of 1.1930 in the four-hour TF can send the quote to the main level – price coordinate 1.2000.
An alternative scenario will be considered depending on the impact of US statistical indicators to the US dollar.
Trading recommendations for GBP/USD pair on Nov 25
Considering the economic calendar, we do not have statistics for the UK today. Therefore, the main news flow will be coming from the United States.
- USA 13:30 Universal time - GDP (Q3) second estimate
- USA 13:30 Universal time - Claims for unemployment benefits
- USA 13:30 Universal time - Orders for durable goods for October
In terms of technical analysis, there was an upward movement during the start of the US session, which led to a breakdown of the variable range of 1.3335/1.3365. It was followed by reaching yesterday's high.
The levels of 1.3300 and 1.3400 serve as a kind of barrier to market participants. As long as one or another border does not decline, the quote will continue to move along the specified amplitude.
