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FX.co ★ Forecast of EUR/USD for November 16, 2020: 1.1726 weekly support to ensure the uptrend.

Forecast of EUR/USD for November 16, 2020: 1.1726 weekly support to ensure the uptrend.

Last week the Euro remained within a range of 150 pip. There is no stronger news which will reverse the trend in the medium term.

The new restrictions and the confinements in several countries of the eurozone to contain the contagion of the virus will weaken the GDP in this last quarter of the year. To cope with the economic crisis, market participants are speculating that the ECB will increase further stimulus at its monetary policy meeting in December.

In the 4-hour chart, we note that EUR/USD is trading above the pressure line and the 200-day EMA which are the key levels that place the euro in an upward trend.

A daily close clearly below 1.1770 will change this trend with targets to support the 0/8 murray line, a key support level (1.1718)

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On the upside it will be hard for the Euro to stay above 1.1920, a daily close above this level would point to testing 1.2000.

In the weekly chart, the pair remains above the EMA 21 weeks, with an upward trend, the key area for it to remain with an upward trend is 1.1726, it shows the pair is above this level, we expect it to continue in the long term with targets up to 1.2000 and 1.2163.

The eagle indicator is at the 61 level showing bullish strength in weekly charts.

Therefore, our recommendation is while the pair is above 1.1726 we will buy this pair, a weekly close below this level could change the trend.

Our Forecast for November 16:

Sell bellow 1.1770 with take profit in 1.1720. Stop loss is above 1.1800

Buy if rebound around 1.1804 and 1.1775 with target 1.1904. Stop loss is below 1.1765.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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