2018-12-07
On October 30, the GBP/USD pair looked oversold around the lower limit of the H4 channel around 1.2700 where profitable BUY entries were suggested.
A quick bullish movement was demonstrated towards the price level of 1.3170-1.3200 where another descending high around the depicted downtrend was established.
This initiated the current bearish pullback towards the depicted consolidation-zone of (1.2750-1.2880) where the current sideway movement within the depicted H4 channel was initiated.
Recently, the GBP/USD pair failed to establish a successful bullish breakout above the price level of 1.2880 (the upper limit of the current consolidation range).
This week, unsuccessful bearish breakout attempts were demonstrated below 1.2720. Moreover, signs of bullish recovery originated around 1.2670 earlier this week.
Bullish persistence above 1.2780 (78.6% Fibo level) is mandatory to enhance the bullish side of the market towards 1.2880 and 1.2940 where new trading decisions should be taken upon price action.
On the other hand, the current scenario may pursue a bearish flag continuation pattern provided that bearish persistence below 1.2730 is achieved on lower timeframes quickly. Projected target for the bearish flag continuation pattern is initially located around 1.2600.
Fundamental Analysis of NZD/USD for December 7, 2018
2018-12-07
NZD/USD has been quite bearish recently after opening the market with a gap this week. The pair is trading lower below 0.69 with a daily close. Ahead of NFP reports, USD is currently quite indecisive whereas NZD is struggling for gains amid the recent economic reports. This may lead to downward momentum.
Recently New Zealand Overseas Trade Index report was published with a decrease to -0.3% from the previous value of 0.4% which was expected to be at 0.1% and ANZ Commodity Index report was published with an increase to -0.6% from the previous value of -2.4%. NZD is currently expected to stay low and stable, having already shed 3% of its value. The kiwi is expected to lose ground in the coming days, thus creating long-term pressure for the future.
On the other hand, USD has been stalled its growth amid the recent economic reports. As a result, the pair is trading indecisively with low liquidity. Ahead of the reports on the US labor market today, certain volatility may be observed on the USD side. Today US Average Hourly Earnings report is going to be published which is expected to increase to 0.3% from the previous value of 0.2, Non-Farm Employment Change is expected to decrease to 198k from the previous figure of 250k, and Unemployment Rate is expected to be unchanged at 3.7%. Though the expectations are mixed, certain optimistic bias can be observed in the market which might lead to certain gains on the USD side if better than expected economic figures are published today.
Meanwhile, USD may extend some gains ahead of upcoming NFP reports while New Zealand provides no economic data to deviate the upcoming pressure and bearish market bias. To sum up, USD is expected to gain certain momentum over NZD in the coming days.
Now let us look at the technical view. The price is currently quite indecisive but having certain bearish pressure below 0.69 and forming Bearish Divergence in the process, is expected to lead the price lower towards 0.6780-0.6800 support area before pushing higher towards 0.7050 in the future. As the price remains above 0.6700 area with a daily close, the bullish bias is expected to continue.
SUPPORT: 0.6700, 0.6780-0.6800
RESISTANCE: 0.69, 0.7050
BIAS: BULLISH
MOMENTUM: NON-VOLATILE
Intraday technical levels and trading recommendations for EUR/USD for December 7, 2018
2018-12-07
On the weekly chart, the EUR/USD pair is demonstrating a high-probability Head and Shoulders reversal pattern where the right shoulder is currently in progress.
On the Daily chart, the pair has been moving sideways with slight bearish tendency. Recent bearish consolidations have been maintained within the depicted daily movement channel since June 2018.
On November 13, the EUR/USD demonstrated recent bullish recovery around 1.1220-1.1250 where the lower limit of the channel as well as the depicted demand zone came to meet the pair.
Bullish fixation above 1.1420 is needed to enhance further bullish movement towards 1.1520. However, the market has demonstrated significant bearish rejection around 1.1420 few times so far.
The EUR/USD pair remains under bearish pressure below 1.1420. Thus, the pair remains trapped between 1.1420 and 1.1270 until breakout occurs in either direction.
Bullish fixation above 1.1420 is needed to enhance further bullish advancement towards 1.1520 and 1.1610.
On the other hand, if early bearish breakout below 1.1270 is achieved on lower timeframes, a quick bearish decline should be expected towards 1.1150-1.1100.
GBP/USD analysis for December 07, 2018
2018-12-07
Recently, the GBP/USD pair has been trading sideways at the price of 1.2765. According to the M15 time – frame, I found out that price is trading above the daily pivot (1.2764), which is a sign that selling looks risky. I also found on the point and figure chart that there is a triple top formation created, which is another sign of strength. My advice is to watch for buying opportunities. The upward targets are set at the price of 1.2826 (resistance 1) and at he price of 1.2875 (resistance 2).
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