2017-12-28
EUR/GBP has been trading inside the corrective range of 0.8750 to 0.9030 for a while now. Both currencies in the pair has been quite indecisive with mixed economic reports recently that have led to further correction and consolidation in this pair. Today, the ECB Economic Bulletin was published that did not encourage further EUR gains over GBP. On the other hand, today the UK High Street Lending report was published with a decreased figure of 39.5k from the previous figure of 40.4k that was expected to be at 40.6k. The price is currently very volatile and indecisive due to downbeat economic reports published today in the eurozone and the UK. Moreover, due to less liquidity in the market, the momentum is very slow and steady. As for the current scenario, a definite trend cannot be predicted now but EUR is expected to have an upper hand over GBP as upcoming economic reports and events are expected to be hawkish in the coming days.
Now let us look at the technical chart. The price is currently consolidating above the dynamic level of 20 EMA after the recent false break below the support level of 0.8750. Currently the price is expected to push higher with a target towards 0.9030 resistance area. As the price remains above 0.8750 price level, the bullish bias is expected to continue further.
Technical analysis of USD/CHF for December 28, 2017
2017-12-28
Overview:
The USD/CHF pair continues to move downwards from the level of 0.9884. Yesterday, the pair dropped from the level of 0.9884 to the bottom around 0.9800. But the pair could not rebound from the bottom of 0.9800; because it is still moving around the spot of 0.9800. Today, the first support level is seen at 0.9791, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 0.9827, which coincides with the 38.2% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend. As a result, if the USD/CHF pair is able to break out the first support at 0.9827, the market will decline further to 0.9763 in order to test the weekly support 2. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.9827 with the first target at 0.9763 and further to 0.9734. However, stop loss is to be placed above the level of 0.9856.
NZD/USD Intraday technical levels and trading recommendations for December 28, 2017
2017-12-28
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 momentum.
That's why, the price zone of 0.6800-0.6830 was considered for a short-term BUY entry. Bullish persistence above 0.6950 and 0.7050 is mandatory to pursue towards next bullish targets.
S/L should be moved to 0.7010 to secure some profits. T/P level remains projected towards 0.7110 and 0.7240.
Technical analysis of NZD/USD for December 28, 2017
2017-12-28
Overview:
The NZD/USD pair continues to move upwards from the level of 0.7032. Yesterday, the pair rose from the level of 0.7032 to a top around 0.7090. Today, the first resistance level is seen at 0.7100 followed by 0.7160, while daily support 1 is seen at 0.7032 (78.6% Fibonacci retracement). According to the previous events, the NZD/USD pair is still moving between the levels of 0.7050 and 0.7160; so we expect a range of 110 pips. Furthermore, if the trend is able to break out through the first resistance level at 0.7100, we should see the pair climbing towards the double top (0.7160) to test it. Therefore, buy above the level of 0.7062 with the first target at 0.9990 in order to test the daily resistance 1 and further to 0.7100. Also, it might be noted that the level of 0.7160 is a good place to take profit because it will form a new double top on the H4 chart. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7032, a further decline to 0.6940 can occur which would indicate a bearish market.
USD/JPY analysis for December 28, 2017
2017-12-28
Recently, the USD/JPY pair has been trading sideways downwards. The price tested the level of 112.66. Anyway, according to the 4H time – frame, I found a major upward trendline (support) on the test, which is a sign that selling looks risky. I also found a hidden bullish divergence on the stochastic oscillator, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 113.35 and at the price of 113.63.
Resistance levels:
R1: 113.84
R2: 114.40
R3: 115.15
Support levels:
S1: 112.50
S2: 111.75
S3: 111.18
Trading recommendations for today: watch for potential buying opportunities.
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