2017-12-12
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.
Trade Recommendations:
An inverted Head and Shoulders pattern is being established on the chart indicating high probability of 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.
Intraday technical levels and trading recommendations for EUR/USD for December 12, 2017
2017-12-12
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 1.1870 to secure some of the profits. Remaining T/P levels to be located at 1.1700 and 1.1590.
EUR/USD analysis for December 12, 20172017-12-12
Recently, the EUR/USD pair has been trading sideways at the price of 1.1777. Anyway, according to the 15M time - frame, I found a broken upward channel in the background, which is a sign that buying looks risky. I also found a bearish momentum on the MACD oscillator, which is another sign of weakness. The short-term trend is bearish. My advice is to watch for potential selling opportunities. The downward target is set at the price of 1.1730.
Resistance levels:
R1: 1.1800
R2: 1.1830
R3: 1.1845
Support levels:
S1: 1.1750
S2: 1.1733
S3: 1.1700
Trading recommendations for today: watch for potential selling opportunities.
Technical analysis of USD/CHF for December 12, 2017
2017-12-12
Overview:
The USD/CHF pair continues to move upwards from the level of 0.9806. Last week, the pair rose from the level of 0.9806 to the top around the area of 0.9921 (pivot). Today, the first resistance level is seen at 0.9972 followed by 1.0037, while daily support 1 is seen at 0.9886. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9886 and 1.0037; for that, we expect a range of 150 pips. If the USD/CHF pair fails to break through the support level of 0.9886, the market will rise further to 0.9972. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to climb higher towards at least 1.0037 with a view to testing the double top. On the other hand, if a breakout takes place at the support level of 0.9800, then this scenario may become invalidated.
Trading recommandations:
The major support is seen at the price of 0.9806. So, it will be very useful to buy above the spot of 0.9806 with the targets of 0.9921 and 1.0037.
USD/JPY analysis for December 12, 2017
2017-12-12
Recently, the USD/JPY pair has been trading sideways at the price of 113.45. Anyway, according to the 30M time – frame, I found a hidden bullish divergence on the stochastic oscillator, which is a sign that selling looks risky. The short - term trend is bullish. My advice is to watch for a potential breakout of 113.50 to confirm a further upward movement. The upward targets are set at the price of 113.74 (pivot resistance 1) and at the price of 113.94 (pivot resistance 2).
Resistance levels:
R1: 113.74
R2: 113.95
R3: 114.20
Support levels:
S1: 113.29
S2: 113.05
S3: 112.85
Trading recommendations for today: watch for potential buying opportunities.
Technical analysis of NZD/USD for December 12, 2017
2017-12-12
Overview:
On the four-hour chart, the USD/CHF pair is trading in the bullish trend from the support levels of 0.6881 and 0.6830. 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 0.6881, which coincides with the first support (23.6% of Fibonacci). Consequently, the second support is set at the level of 0.6830. So, the market is likely to show signs of a bullish trend around the spot of 0.6830/0.6881. In other words, buy orders are recommended above the support of (0.6881) with the first target at the level of 0.6993. Furthermore, if the trend is able to breakout through the first resistance level of 0.6993. We should see the pair climbing towards the price of 0.7043 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 0.6813.
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