2017-12-21
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.
The 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 the further bearish decline was expected towards 0.6800 (Reversal pattern bearish target).
Evident signs of bullish recovery were 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 a 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.
Intraday technical levels and trading recommendations for EUR/USD for December 21, 2017
2017-12-21
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, the 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).
The bearish target for the depicted Head and Shoulders pattern extends towards 1.1350. However, to pursue towards the mentioned target level, a 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.
Technical analysis of NZD/USD for December 21, 2017
2017-12-21
Overview:
The resistance of NZD/USD pair is set at the level of 0.7034. 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.
Also, 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 (the level of 0.7034 coincides with the double top too). 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 0.6823.
EUR/USD analysis for December 21, 2017
2017-12-21
Recently, the EUR/USD pair has been trading sideways at the price of 1.1860. Anyway, according to the 30M time – frame, I found a broken rising wedge forrmation inside of a lager broadening wegde formation, which is a sign that buying looks risky. My advice is to watch for potential selling opportunities. I have placed Fibonacci retracement to find potential downward targets. I got FR 38.2% at the price of 1.1840, FR 50% at the price of 1.1820 and FR 61.8% at the price of 1.1800.
Resistance levels:
R1: 1.1905
R2: 1.1940
R3: 1.1980
Support levels:
S1: 1.1835
S2: 1.1795
S3: 1.1760
Trading recommendations for today: watch for potential selling opportunities.
Get Bonus No Deposite in your Trading Account now and add this currency pair to your forex portfolio, enjoy your trading with us!
No comments:
Post a Comment