2017-12-04
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, recent price action around the price zone of 1.1520-1.1415 indicated evident bullish recovery. This hinders further bearish decline as long as the recent low around 1.1550 remains unbroken.
Trade Recommendations
The current price levels around 1.1900-1.1950 should be watched for a possible short-term SELL entry if the current signs of bearish rejection are maintained.
S/L should be placed above 1.2030. T/P levels to be located at 1.1850, 1.1700 and 1.1590.
NZD/USD Intraday technical levels and trading recommendations for December 4, 2017
2017-12-04
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 was expected towards 0.7050.
On the other hand, an inverted Head and Shoulders pattern is being established on the chart indicating bullish reversal.
That's why, the price zone of 0.6800-0.6830 can be considered for a short-term BUY entry. S/L should be placed below 0.6770. T/P level remains projected towards 0.7050.
EUR/USD analysis for December 04, 2017
2017-12-04
Recently, the EUR/USD has been trading downwards. The price tested the level of 1.1836. According to the 1H time - frame, I found rejection from that support level at the price of 1.1850. I also found a hidden bullish divergence on the stochastic oscillator, which is a sign that selling looks risky. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 1.1896 (pivot) and at the price of 1.1940 (pivot resistance 1).
Resistance levels:
R1: 1.1942
R2: 1.1986
R3: 1.2030
Support levels:
S1: 1.1850
S2: 1.1807
S3: 1.1760
Trading recommendations for today: watch for potential buying opportunities.
Technical analysis of EUR/USD for December 04, 2017
2017-12-04
Overview:
Last week, the EUR/USD pair broke resistance which turned to strong support at the level of 1.1908. However, the major support is seen at the price of 1.1870.
The level of 1.1870 coincides with the ratio of 78.6% of Fibonacci, which is expected to act as major support today.
The Relative Strength Index (RSI) is considered overbought because it is above 70. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100).
This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend.
In other words, buy orders are recommended above 1.1908 with the first target at the level of 1.1953. From this point, the pair is likely to begin an ascending movement to the point of 1.2014 and further to the level of 1.2053. The level of 1.2053 will act as strong resistance.
On the other hand, if a breakout happens at the support level of 1.1873, then this scenario may become invalidated.
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