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05.11.202410:21 Forex Analysis & Reviews: EUR/USD and GBP/USD on November 5 – Technical Analysis

Relevance up to 03:00 2024-11-06 UTC--5
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EUR/USD

Exchange Rates 05.11.2024 analysis

Higher Time Frames

Yesterday, the monthly short-term trend resistance (1.0909) was tested. Despite the significant upward gap at the opening and the bulls' persistence, the outcome is recorded as a long upper shadow on the daily candle. It may take considerable effort from the bulls to overcome this monthly resistance (1.0909) and push into the bullish zone relative to the bearish monthly Ichimoku cloud (1.0943). The cluster of weekly levels (1.0876, 1.0863, 1.0844) and the daily short-term trend (1.0842) maintain a gravitational pull on the current development, providing some support for the bulls. For bears to assert their stance, they must break free from this zone and move significantly lower.

Exchange Rates 05.11.2024 analysis

H4 – H1

The pair is in a corrective zone on the lower time frames, staying above the weekly long-term trend (1.0858), giving bulls the main advantage. Today's upward targets within the day are the classic Pivot resistance levels (1.0908, 1.0939, 1.0963) and the target for breaking through the H4 cloud (1.0921, 1.0939). Breaking and reversing the trend (1.0858) would create conditions to shift the current balance of power. The downward targets within the day are the classic Pivot support levels (1.0853, 1.0829, 1.0798).

***

GBP/USD

Exchange Rates 05.11.2024 analysis

Higher Time Frames

The upward gap pushed the pair into the influence of two key levels. The bulls found support from the daily short-term trend (1.2942), preventing the gap from closing, while the bears relied on the weekly medium-term trend resistance (1.2971), which halted the bulls from achieving higher targets. Today's development still depends on these two levels; whoever breaks through the opposing level will likely dictate the direction.

Exchange Rates 05.11.2024 analysis

H4 – H1

On the lower time frames, the situation is neutral. Key levels of 1.2961 (central daily Pivot) and 1.2958 (weekly long-term trend) have converged and are aligned horizontally. The H4 cloud (1.2976, 1.2988) adds to the uncertainty. If either side establishes a decisive movement, the classic Pivot levels within the day will come into play. Bulls need to break through the classic Pivot resistances (1.2989, 1.3025, 1.3053), while bears need to break through the classic Pivot supports (1.2925, 1.2897, 1.2861).

***

Technical Analysis Tools Used:

  • Higher Time Frames: Ichimoku Kinko Hyo (9.26.52) + Fibonacci Kijun levels
  • Lower Time Frames: H1 – Classic Pivot Points + 120-period Moving Average (weekly long-term trend)
Evangelos Poulakis
Analytical expert of InstaForex
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