2017-12-26
EUR/USD has been quite bullish recently that pushed the price higher to the resistance area between 1.1850 and 1.1930. Amid the thin market during the holidays this week, the pair is likely to continue correction moves without any trend defining momentum. Nevertheless, USD is expected to have stronger momentum over EUR as some market-moving economic reports are going to be published this week. Today, USD S&P/CS Composite-20 HPI report is due which is expected to have a slight increase to 6.3% from the previous value of 6.2% and Richmond Manufacturing Index is expected to decrease to 22 from the previous figure of 30. Moreover, in the coming days of the week, US CB Consumer Confidence report and Unemployment Claims report are going to be published which are also forecasted to bring mixed readings. On the EUR side, today we do not have any economic reports or events to have an impact of EUR's gains. However, on Thursday this week the ECB Economic Bulletin is going to be released. Besides, on Friday German Prelim CPI, Spanish Flash CPI, and M3 Money Supply reports are going to be published where most of the forecasts are negative for the currency. As for the current scenario, the US is expected to present some positive economic reports which could provide the US currency with support. So USD could gain momentum over EUR in the coming days. Though the market is expected to be quite corrective in the coming days, any impulsive bearish pressure will lead to the overall bearish pressure in the short term.
Now let us look at the technical chart. The price is currently holding inside the resistance area between 1.1850 and 1.1930. Besides,the dynamic level of 20 EMA is acting as support. The market is currently expected to be quite corrective and less liquid amid the holidays. However, a break above 1.1930 with a daily close will lead to further bullish pressure with a target towards 1.2050. Though the price has the bullish pre-breakout structure, it also suggests the probability of bearish pressure as well. In this case, if the price breaks below 1.1850 with a daily close, then we will be looking forward for a bearish move in the coming days with a target towards 1.1660 support area in the coming days.
Technical analysis of NZD/USD for December 26, 2017
2017-12-26
Overview:
On the one-hour chart, the NZD/USD pair bullish trend from the support levels of 0.6950 and 0.6985. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.6950 (major support), which coincides with a golden ratio (61.8% of Fibonacci). Consequently, the first support is set at the level of 0.6985. So, the market is likely to show signs of a bullish trend around the spot of 0.6985. In other words, buy orders are recommended above the first support (0.6985) with the first target at the level of 0.7065. Furthermore, if the trend is able to breakout through the first resistance level of 0.7065. We should see the pair climbing towards the bext target (0.7090) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 0.6950.
Technical analysis of USD/CHF for December 26, 2017
2017-12-26
Overview:
Pivot: 0.9921.
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 H4 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.
However, 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.
Fundamental Analysis of USD/JPY for December 26, 2017
2017-12-26
USD/JPY has recently rejected off the 113.60 resistance area in a bullish volatile trend. USD has been dominating the JPY for a few months now whereas currently, JPY is showing some momentum to get over it. Today, JPY Household Spending report was published with an increase to 1.7% from the previous value of 0.0% which was expected to be at 0.6%, National Core CPI report showed increase to 0.9% which was expected to be unchanged at 0.8%, Tokyo Core CPI increased to 0.8% from the previous value of 0.6% which was expected to be at 0.7%, SPPI was published unchanged as expected at 0.8% and Unemployment Rate has decreased to 2.7% which was also expected to be unchanged at 2.8%. The positive economic report results helped JPY to gain some momentum currency but any positive economic report from USD side may put the market into correction again. On the USD side, USD S&P/CS Composite-20 HPI report is going to be published which is expected to have a slight increase to 6.3% from the previous value of 6.2% and Richmond Manufacturing Index is expected to decrease to 22 from the previous figure of 30. Additionally, this week USD CB Consumer Confidence report and Unemployment Claims report is going to be published which is also forecasted to be quite mixed with the outcome. To sum up, JPY is currently quite positive with the bearish momentum backed by positive economic reports today which is expected to help the currency to gain good momentum over USD in the coming days.
Now let us look at the technical view, the price is currently residing above the support area of 113.10 where a daily close below this area will lead to impulsive bearish pressure in the coming days with the target towards 112.00 support area. As the price remains below 113.60 resistance area the bearish bias is expected to continue further.
Fundamental Analysis of GBP/USD for December 26, 2017
2017-12-26
GBP/USD has been extremely volatile and corrective recently above the 1.3300 support area. GBP is currently struggling to gain over USD despite the recent market sentiment which is not in favor of USD to gain some momentum. Currently, the pair is expected to make some corrective moves on the thin market as the holidays are being observed all over the world. So, most of traders are out of the market, taking a break. Despite the holiday, there are certain economic reports which are going to be published this week which might help to establish a clear trend in the coming days. Today, US S&P/CS Composite-20 HPI report is going to be published which is expected to have a slight increase to 6.3% from the previous value of 6.2% and Richmond Manufacturing Index is expected to decrease to 22 from the previous figure of 30. Moreover, this week US CB Consumer Confidence report and Unemployment Claims report are going to be published which might play a vital role to establish good momentum for USD against GBP. On the other hand, today there are no economic reports or events meaningful for GBP amid the observance of Boxing day. However, tomorrow UK High Street Lending report is going to be published which is expected to show a slight increase to 40.6k from the previous figure of 40.5k. Though the economic report is expected to have minimum impact on GBP, a better-than-expected result might help to cap USD gains. As for the current scenario, USD is expected to gain momentum with more high impact economic reports this week. So, positive results will lead to much impulsive bearish pressure in the pair.
Now let us look at the technical chart. The price is currently being squeezed with bearish pressure forming a Triangle pattern which is also recognized as a Pre-breakout Structure as well. As for the current price movement, the price is expected to break below 1.33 in the coming days. If the price breaks and closes below 1.33 with a daily close, then we will consider sell positions with a target towards 1.3030-50 support area. As the price remains below 1.3450, the bearish bias is expected to continue further.
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