German Coalition talks collapsed – the euro fell. Germany has been without a federal Government since the elections in September and now, after coalition talks ended in a dramatic collapse, the signs are pointing to new elections. The euro dropped below 1.1750 shifting the focus now towards the lower support area between 1.17 – 1.1670.
As for the British pound, there was no breakthrough in terms of a directional bias. The GBP/USD is still confined to its recent trading range with the Brexit cloud hanging over the market’s risk appetite.
What will be important this week? Not much as there are no major risk events or economic reports coming up leading to a dramatic change in sentiment. There is some central bank speech scheduled throughout this week but liquidity will be running thinner in a week shortened be the Thanksgiving holiday in the United States. Minutes from the Fed’s latest policy meeting are due on Wednesday but the minutes are unlikely to have a significant impact on the U.S. dollar since the market is almost certain that the Fed will raise interest rates in December.
ECB President Mario Draghi is scheduled to speak in Brussels today at 14:00 UTC but his appearance is not expected to serve as a game changer for the euro. As long as there are no fundamental drivers in sight we focus on the technical picture and its profitable opportunities.
EUR/USD
The euro came under pressure amid the German political impasse and if the single currency falls below 1.1720 it may head for a test of the lower support area, ranging from 1.17 to 1.1670. For the euro to regain strength it would need to break the 1.1840-reistance significantly.
GBP/USD
There is nothing new in the cable. The consolidating phase between 1.3340 and 1.30 is still prevailing while a slight upward trend channel has been formatted between 1.3280 and 1.3160. Any price breaks above or below these levels should require our attention. 
Here are our daily signal alerts:
EUR/USD
Long at 1.1780 SL 25 TP 15, 40
Short at 1.1720 SL 25 TP 18, 40
GBP/USD
Long at 1.3225 SL 25 TP 20, 50
Short at 1.3169 SL 25 TP 30-40
We wish you good trades and many pips!
Disclaimer: Any and all liability of the author is excluded.