EUR/USD Daily Forecast for November 19: Downtrend Continues - Chart Analysis

EUR/USD Signal - 19 November 2024

Source: DailyForex

Market Overview

The EUR/USD exchange rate has experienced a rebound after recently hitting a multi-month low of 1.0497. Currently, it trades around 1.0590, influenced by significant changes in oil prices and upcoming European inflation data.

Technical Analysis

• Current Trend: Despite the recent rebound, the overall downtrend remains intact.
• Resistance Levels: Key resistance is seen at 1.0670, while a move above this could signal further upside.
• Support Levels: Significant support is found at 1.0500, with further downside indicated below this point.
• Moving Averages: The pair is currently below both the 50-day and 200-day Exponential Moving Averages (EMAs), which suggests a bearish trend.
• Relative Strength Index (RSI): The RSI has moved from oversold conditions, indicating potential short-term bullish momentum.

Trading Strategy

• Bullish View:
  • Buy EUR/USD pair with a take-profit set at 1.0700.
  • Place a stop-loss at 1.0500.
  • Recommended holding period: 1-2 days.
• Bearish View:
  • Set a sell-stop at 1.0575 with a take-profit at 1.0500.
  • Stop-loss should be placed at 1.0670.

Upcoming Economic Indicators

• Inflation Data: European inflation figures are expected to show a rise from -0.1% to 0.3% in October, with a year-over-year increase anticipated at 2.0%.
• Core Inflation: Expected to come in at 2.7%.
• Housing Data: Anticipated housing starts are projected to slow to 1.34 million, while building permits may rise to 1.44 million.