2017-12-22
EUR/GBP has been quite volatile and corrective with the recent gains after bouncing off the 0.8750 support area. EUR has found support from recent economic reports which helped the currency to gain good momentum over GBP. EUR is likely to keep momentum in the coming days. Today, German Gfk Consumer Climate report was published with a slight increase to 10.8 which was expected to be unchanged at 10.7, German Import Price report showed an increase to 0.8% from the previous value of 0.6%, and French Consumer Spending report showed a significant increase to 2.2% from the previous negative value of -2.1% which was expected to be at 1.4%. On the other hand, today UK Current Account report is going to be published which is expected to show less deficit at -21.5B from the previous figure of 23.2B, Final GDP is expected to be unchanged at 0.4%, Index of Services is expected to decrease to 0.3% from the previous value of 0.4%, and Revised Business Investment is expected to be unchanged at 0.2%. As for the current scenario, EUR is currently stronger in the pair whereas any positive economic report from the UK today may lead to further volatility and corrections in the pair though the bulls are currently quite strong and have better ability to sustain the gains over GBP in the coming days.
Now let us look at the technical chart. The price is currently residing above the dynamic level of 20 EMA which is working as a support for the price to push higher. The price has been quite volatile recently but now the price is holding above the recent lower highs which indicates that the bulls are getting ready to take the price much higher towards 0.9050 resistance area. As the price remains above 0.8750 support area, the bullish bias is expected to continue further.
Technical analysis of NZD/USD for December 22, 2017
2017-12-22
Overview:
The Kiwi is still move between the resistance and support of 0.7034 and 0.6927. The trend of NZD/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.6927 and 0.7034. Besides, the daily resistance and support are seen at the levels of 0.6927 and 0.6872 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. Last week, the market moved from its bottom at 0.6927 and continued to rise towards the top of 0.7034. Today, in the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.7034, the market will indicate a bearish opportunity below the strong resistance level of 0.7034 . Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.7034 with the first target at 0.6927. If the trend breaks the support level of 0.6927, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.6872 in order to test the daily support 2. Tt should be noted that the double bottom is seen at the point of 0.6872.
Technical analysis of USD/CHF for December 22, 2017
2017-12-22
Overview:
The USD/CHF pair is stil continuing an uptrend since from the spot of 0.9850 and 0.9880. The bias remains bullish in the nearest term testing 1.0037 or higher. The price is still trading around the spot of 0.6948 and 0.7026. The USD/CHF pair will continue to rise from the level of 0.6948. The support is found at the level of 0.6948, which represents the 61.8% Fibonacci retracement level in the H1 time frame. The price is likely to form a double bottom. Today, the major support is seen at 0.6948, while immediate resistance is seen at 0.7026. Accordingly, the USD/CHF pair is showing signs of strength following a breakout of a high at 0.6948. So, buy above the level of 0.6948 with the first target at 0.7026 in order to test the daily resistance 1. Also, the level of 0.7026 is a good place to take profit because it will form a double top. Amid the previous events, the pair is still in an uptrend; for that we expect the USD/CHF pair to climb from 0.7026 to 0.7065 today. At the same time, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.6948, a further decline to 0.6820 can occur, which would indicate a bearish market.
Intraday technical levels and trading recommendations for EUR/USD for December 22, 2017
2017-12-22
Monthly Outlook
In January 2015, the EUR/USD pair moved below the major demand levels near 1.2050-1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target was projected toward 0.9450.
In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.
In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.
However, the EUR/USD pair has been trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450.
The current bullish breakout above 1.1450 allowed a quick bullish advance towards 1.2100 where recent evidence of bearish rejection was expressed (Note the previous Monthly candlestick of September).
Daily Outlook
In January 2017, the previous downtrend was reversed when the Inverted Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.
As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further bullish advance towards 1.1415-1.1520 (Previous Daily Supply-Zone).
The daily supply zone failed to pause the ongoing bullish momentum. Instead, evident bullish breakout was expressed towards the price level of 1.2100 where the depicted Head and Shoulders reversal pattern was expressed.
If the recent bearish breakout persists below 1.1700 (Neckline of the reversal pattern), a quick bearish decline should be expected towards the price zone of 1.1415-1.1520 (Initial targets for the depicted H&S pattern).
Bearish target for the depicted Head and Shoulders pattern extends towards 1.1350. However, to pursue towards the mentioned target level, significant bearish pressure is needed to be applied against the mentioned zone (1.1415-1.1520).
However, In November, recent price action around the price zone of 1.1520-1.1415 indicated evident bullish recovery. This hindered further bearish decline which allowed the current bullish pullback to occur towards the price level of 1.1900.
Trade Recommendations
The price levels around 1.1900-1.1950 were suggested for a valid short-term SELL entry. It's already running in profits.
S/L should be lowered to 1.1900 to offset the associated risk. Remaining T/P levels to be located at 1.1700 and 1.1590.
NZD/USD Intraday technical levels and trading recommendations for December 22, 2017
2017-12-22
Daily Outlook
A recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.
This resulted in a quick bullish advance towards next price zones around 0.7150-0.7230 (Key-Zone) and 0.7310-0.7380 which was temporarily breached to the upside.
Recent bearish pullback was executed towards the price zone of 0.7310-0.7380 (newly-established demand-zone) which failed to offer enough bullish support for the NZD/USD pair.
Re-consolidation below the price level of 0.7300 enhanced the bearish side of the market. This brought the NZD/USD pair again towards 0.7230-0.7150 (Key-Zone) which failed to pause the ongoing bearish momentum.
An atypical Head and Shoulders pattern was expressed on the depicted chart which initiated bearish reversal.
As expected, the price level of 0.7050 failed to offer enough bullish support for the NZD/USD pair. That's why, further bearish decline was expected towards 0.6800 (Reversal pattern bearish target).
Evident signs of bullish recovery was expressed around the recent low (0.6780). That's why, a bullish pullback is expected towards 0.7050.
Moreover, further bullish advance should be expected towards 0.7150 if enough bullish momentum is expressed above the price level of 0.7050.
Trade Recommendations:
An inverted Head and Shoulders pattern was established on the chart indicating high probability of bullish reversal.
That's why, the price zone of 0.6800-0.6830 was considered for a short-term BUY entry. Bullish persistence above 0.6950 (neckline) is mandatory to pursue towards next bullish targets.
S/L should be moved to 0.6900 to secure some profits. T/P level remains projected towards 0.7050 and 0.7110.
EUR/USD analysis for December 22, 2017
2017-12-22
Recently, the EUR/USD has been trading downwards. As I expected, the price tested the level of 1.1817. According to the 30M time – frame, I found broken pennant in the background, which is sign that buying looks risky. My advice is to watch for potential selling opportunities. The downward targets are set at the pice of 1.1820 (FR 50%) and at the price of 1.1800 (FR 61.8%).
Resistance levels:
R1: 1.1893
R2: 1.1910
R3: 1.1933
Support levels:
S1: 1.1850
S2: 1.1830
S3: 1.1812
Trading recommendations for today: watch for potential selling opportunities.
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