2018-12-17
Overview:
The NZD/USD pair broke resistance which turned into strong support at the level of 0.6705 this week. The level of 0.6705 coincides with a golden ratio (61.8% 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). Besides, note that the pivot point is seen at the point of 0.6882. 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 0.6800 with the first target at the level of 0.6882. From this point, the pair is likely to begin an ascending movement to the point of 0.6882 and further to the level of 0.6984. The level of 0.6984 will act as strong resistance. On the other hand, if a breakout happens at the support level of 0.6705, then this scenario may become invalidated.
Technical analysis of EUR/USD for December 17, 2018
2018-12-17
The NZD/USD pair broke resistance which turned into strong support at the level of 0.6705 this week. The level of 0.6705 coincides with a golden ratio (61.8% 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). Besides, note that the pivot point is seen at the point of 0.6882. 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 0.6800 with the first target at the level of 0.6882. From this point, the pair is likely to begin an ascending movement to the point of 0.6882 and further to the level of 0.6984. The level of 0.6984 will act as strong resistance. On the other hand, if a breakout happens at the support level of 0.6705, then this scenario may become invalidated.
Technical analysis of EUR/USD for December 17, 2018
2018-12-17
Overview:
The EUR/USD pair fell from the level of 1.1338 towards 1.1265. Now, the price is set at 1.1330. The resistance is seen at the level of 1.1338 and 1.1390. Moreover, the price area of 1.1390/1.1338 remains a significant resistance zone. Therefore, there is a possibility that the EUR/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Thus, amid the previous events, the price is still moving between the levels of 1.1338 and 1.1253. If the EUR/USD pair fails to break through the resistance level of 1.1338, the market will decline further to 1.1253 as as the first target. This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.1197 so as to test the daily support 2. On the contrary, if a breakout takes place at the resistance level of 1.1338, then this scenario may become invalidated.
Intraday technical levels and trading recommendations for EUR/USD for December 17, 2018
2018-12-17
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 was 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 a breakout occurs in either direction.
If early bearish breakout below 1.1270 is achieved on lower timeframes, a quick decline should be expected towards 1.1150-1.1100.
On the other hand, bullish fixation above 1.1420 invalidates the bearish scenario allowing a further bullish advance to occur towards 1.1520 and 1.1610.
Intraday technical levels and trading recommendations for GBP/USD for December 17, 2018
2018-12-17
Since Mid-November, the GBP/USD pair failed to establish a successful bullish breakout above the price level of 1.2880 (the upper limit of the depicted consolidation range).
On December 6, the GBP/USD pair failed to demonstrate a successful breakout above 1.2780 (79.6% Fibonacci). That's why, a significant bearish decline was demonstrated towards the price level of 1.2500.
This bearish decline extended down to the price level of 1.2480 before bullish recovery could take place on December 12.
The current scenario could pursue as a bearish flag continuation pattern provided that bearish persistence below 1.2660 (corresponding to a prominent daily low) is maintained on a daily basis.
On the other hand, the current bullish pullback towards the price zone of 1.2660-1.2700 can be watched for a valid SELL entry as this price zone corresponds to the backside of the broken consolidation range as well as the depicted downtrend on the H4 chart.
Projected target for the bearish flag continuation pattern is located around 1.2300. Initial bearish destination is located around 1.2580 while S/L should be set as daily closure above 1.2800.
The EUR/USD pair fell from the level of 1.1338 towards 1.1265. Now, the price is set at 1.1330. The resistance is seen at the level of 1.1338 and 1.1390. Moreover, the price area of 1.1390/1.1338 remains a significant resistance zone. Therefore, there is a possibility that the EUR/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Thus, amid the previous events, the price is still moving between the levels of 1.1338 and 1.1253. If the EUR/USD pair fails to break through the resistance level of 1.1338, the market will decline further to 1.1253 as as the first target. This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.1197 so as to test the daily support 2. On the contrary, if a breakout takes place at the resistance level of 1.1338, then this scenario may become invalidated.
Intraday technical levels and trading recommendations for EUR/USD for December 17, 2018
2018-12-17
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 was 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 a breakout occurs in either direction.
If early bearish breakout below 1.1270 is achieved on lower timeframes, a quick decline should be expected towards 1.1150-1.1100.
On the other hand, bullish fixation above 1.1420 invalidates the bearish scenario allowing a further bullish advance to occur towards 1.1520 and 1.1610.
Intraday technical levels and trading recommendations for GBP/USD for December 17, 2018
2018-12-17
Since Mid-November, the GBP/USD pair failed to establish a successful bullish breakout above the price level of 1.2880 (the upper limit of the depicted consolidation range).
On December 6, the GBP/USD pair failed to demonstrate a successful breakout above 1.2780 (79.6% Fibonacci). That's why, a significant bearish decline was demonstrated towards the price level of 1.2500.
This bearish decline extended down to the price level of 1.2480 before bullish recovery could take place on December 12.
The current scenario could pursue as a bearish flag continuation pattern provided that bearish persistence below 1.2660 (corresponding to a prominent daily low) is maintained on a daily basis.
On the other hand, the current bullish pullback towards the price zone of 1.2660-1.2700 can be watched for a valid SELL entry as this price zone corresponds to the backside of the broken consolidation range as well as the depicted downtrend on the H4 chart.
Projected target for the bearish flag continuation pattern is located around 1.2300. Initial bearish destination is located around 1.2580 while S/L should be set as daily closure above 1.2800.
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