2017-12-18
EUR/USD has been quite bearish recently after bouncing off the 1.1850 resistance area. The market is still quite volatile, but the price is expected to be bearish in the coming days. Despite having a hike in interest rates USD was quite weak against EUR which was recovered well enough with the positive development based on Tax Reform, yet the gain was not quite impulsive due to worse economic reports published recently. Today EUR Italian Trade Balance report is going to be published which is expected to decrease to 3.23B from the previous figure of 3.99B, Final CPI is expected to be unchanged at 1.5%, Final Core CPI is also expected to remain unchanged at 0.9% and German Buba Monthly Report which is the report of current and future economic conditions is expected to be quite neutral. On the USD side, today we have only NAHB Housing Market Index which is expected to be unchanged at 70 and Final GDP report is going to be published on Thursday which is also expected to be unchanged at 3.3%. Ahead of the Christmas holiday this week, the pair is expected to be quite corrective and experience lack of liquidity. As of the current market scenario, USD is expected to gain momentum over EUR despite any positive economic reports or events from the EUR side.
Now let us look at the technical view, the price has recently broken below the 1.1770 support level with a daily close which is expected to have a retest before price continues further down towards 1.1660 support level in the coming days. The previous bearish daily candle is also being held by the dynamic level of 20 EMA as resistance which explains the confluence of upcoming bearish move in the pair. As the price remains below 1.1850 the bearish bias is expected to continue further.
Elliott wave analysis of EUR/JPY for December 18, 2017
2017-12-18
Wave summary:
We continue to look for more downside pressure to important support at 131.14 and a break below here will confirm that wave (D) completed with the test of 134.50 and wave (E) lower to 123.43 is developing.
Short-term resistance is now seen at 132.78 and again at 133.76, which needs to cap the upside for the expected decline towards 131.14.
R3: 133.89
R2: 133.76
R1: 132.78
Pivot: 132.11
S1: 131.70
S2: 131.14
S3: 130.56
Trading recommendation:
We are short EUR from 133.40 with stop placed at 133.80.
Elliott wave analysis of EUR/NZD for December 18, 2017
2017-12-18
Wave summary:
EUR/NZD is now trading just above its 1.6720 targets, which is expected to mark the low for wave (iv) and set the stage for a strong rally in wave (v) towards 1.7770. Short-term a break above minor resistance at 1.6873 will indicate that wave (iv) has completed, while a break above resistance at 1.6965 will confirm that wave (iv) has completed and wave (v) higher is developing.
R3: 1.6965
R2: 1.6918
R1: 1.6873
Pivot: 1.6836
S1: 1.6757
S2: 1.6720
R3: 1.6695
Trading recommendation:
We will buy EUR at 1.6735 or upon a break above 1.6873.
Get Bonus No Deposite in your Trading Account now and add this currency pair to your forex portfolio, enjoy your trading with us!
No comments:
Post a Comment