InstaForex

November 26, 2021

Where Is EUR/USD Going Slowly On Friday Night?

 The USD seems to be sad and slow following the ‘Thanksgiving Day’ holiday that took place yesterday and has completely hampered the strengthening of the king of the currency at this time.


Yet the strengthening of the USD is still seen after being driven by hawkish statements during the minutes of the FOMC meeting that were able to continue to support the Federal Reserve (Fed) to tighten policy.


However, investors need to be wary of the high probability of profit taking activity over the weekend and ahead of the November close.




Judging by the price on the chart of the EUR/USD pair, the price was seen moving slowly and horizontally during yesterday's trading session (Thursday) to remain traded in the support zone of 1.12000.


But the price movement seems to be trying to pass the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame to signal a change in trend.


Analysts expect that price movements in the European session later and continue to the New York session today (Friday) will likely be brisk and will see the real direction of prices.



If the price increase succeeds, investors will likely wait for the price to move to the previous support zone which is now the SBR (support become resistance) zone of 1.13000 to be tested.


A more aggressive increase will see the price move to reach the SBR zone at 1.14000 and thus will be a clear shadow for the price to return with a bullish trend.


On the other hand, the 2021 low around 1.11900 is expected to be reached before a lower price plunge that will likely be able to reach the support zone of 1.11000.


In conclusion, the decline in the price towards the support zone will indirectly see the bearish trend signal will be maintained and the latest low level since June 2020 will be created again.