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Technical Overview of EUR/USD and USD/CAD Currency Pair

EUR USD

EUR traded higher against USD and closed at 1.1096.

•    EUR/USD is gaining ground on broad-based dollar selling.
•    The pair is closing on a crucial trendline hurdle at 1.1140.
•    With gold rising amid trade optimism, a breakout looks likely.

The easing of trade tensions is good news for Germany. The 18-month US-China trade war had pushed the Eurozone's manufacturing powerhouse and biggest economy to the brink of recession.

As a result, the dollar could continue to lose ground in Friday's European session – more so, as the equity market buoyancy is expected to continue with Amazon, the e-commerce giant, reporting record holiday season.

According to the Analysis, pair is expected to find support at 1.1087 and a fall through could take it to the next support level of 1.1080. The pair is expected to find its first resistance at 1.1107 and a rise through could take it to the next resistance level of 1.1114.

USD CAD

USD traded lower against CAD and closed at 1.3121.

•    USD/CAD on track for a test below 1.31 the figure on firm commodity complex.
•    Phase-one trade deal between the US and China is in the making, supporting commodity currencies.

Funds is under pressure as the commodity complex catches a bid on the so-called 'phase-one' trade deal that is scheduled to be signed in January between the US and China.

 The trade, ownership and technology practices of Chinese companies for the past two decades will not vanish overnight, nor will optimism of US and Canadian executives return with two signatures.  

According to the Analysis, pair is expected to find support at 1.3100 and a fall through could take it to the next support level of 1.3087. The pair is expected to find its first resistance at 1.3144, and a rise through could take it to the next resistance level of 1.3157.

Important Economic Events of the Day

•    JPY: Retail Sales m/m
•    USD: EIA Crude Oil Stocks Change
•    USD: Baker Hughes US Oil Rig Count
•    GBP: Nationwide HPI m/m

For More information about the release time of news and its impact visit Economic Calendar Page!

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Technical Overview of EUR/USD and GBP / USD Currency Pair

EUR /USD

EUR traded Higher against USD and closed at 1.1175.

EUR/USD is attempting a convincing break above 1.12 amid broad-based US dollar weakness.

The currency pair is currently trading at 1.1196, representing a 0.20% gain on the day, having hit a high of 1.1210 in Asia.

Dollar's bearish trend continued in Asia and looks to have legs, as gold, a hard currency, is reporting a 3% gain on a month-to-date basis in dollar terms and is expected to put on a good show next year. The trend in the gold market is widely used as an indicator to confirm the bullish/bearish price action in the US dollar. 

EUR/USD's bullish case looks stronger with the weekly chart reporting an upside break of the trendline connecting September 2018 and June 2019 highs. 

According to the Analysis, pair is expected to find support at 1.1196 and a fall through could take it to the next support level of 1.1195. The pair is expected to find its first resistance at 1.1200 and a rise through could take it to the next resistance level of 1.1201.

GBP / USD  

GBP traded higher against USD and closed at 1.3076

  •           GBP/USD remains on the front foot for the fifth consecutive day to the highest since December 19.
  • ·         The Brexit party leader Nigel Farage’s former adviser Trixy Sanderson signaled the EU’s preparations for a no-deal departure.
  • ·         The market lost interest in the greenback as phase-one calls rise but US-China political divide remains.

According to the Analysis, pair is expected to find support at 1.3075 and a fall through could take it to the next support level of 1.3068. The pair is expected to find its first resistance at 1.3097, and a rise through could take it to the next resistance level of 1.3104.

 

Important Economic Events of the Day

  • ·         USD: Pending Home Sales m/m
  • ·         USD: Pending Home Sales y/y
  • ·         USD: Goods Trade Balance

For More information about the release time of news and its impact visit Economic Calendar Page!

 

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Posted (edited)

Technical Overview of EUR/USD and GBP / USD Currency Pair

EUR /USD

EUR traded lower against USD and closed at 1.1193

The market is well placed to retest resistance at 1.1197- 1.1240 – namely the 55-week ma, the 2019-2020 down channel and the recent high. This guards the 200-week ma at

1.1360 which continues to represent a critical breakpoint medium term.”

“Dips lower are well supported by the 55 and 20-day ma at 1.1095/1.1065 and the 3-month uptrend at 1.1045.”

“Failure at the uptrend would target the 1.0981 29th November low.”

According to the Analysis, pair is expected to find support at 1.1167 and a fall through could take it to the next support level of 1.1156 The pair is expected to find its first resistance at 1.1205 and a rise through could take it to the next the resistance level of 1.1216. 

GBP/USD  

  GBP traded higher against USD and closed at 1.3167

“we look for dips lower to remain well supported by the 55-day ma at 1.2987. The low on the 23rd December was 1.2908 and while above here we will assume an upside bias to retest the December high at 1.3515.”

“The December high at 1.3515 guards the September 2017 high and 38.2% retracement (of the move down from 2014) at 1.3658/68. This guards the more important 1.3918 2007 -2020 downtrend.”

According to the Analysis, pair is expected to find support at 1.2841 and a fall through could take it to the next support level of 1.2604. The pair is expected to find its first resistance at 1.3461, and a rise through could take it to the next resistance level of 1.3607.

Important Economic Events of the Day

·        EUR Retail Sales m/m.

·        EUR Retail Sales y/y.

·        GBP 10-Year Treasury Gilt Auction.

·        USD Trade Balance.

More information about the release time of news and its impact visit Economic Calendar Page!

Edited by xtreamforex

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Technical Overview of GBP/USD and EUR/USD Currency Pair

GBP USD

GBP traded higher against USD and closed at 1.3017.

GBP/USD looks to extend the bounce towards 1.3050 ahead of the UK CPI report, as broad-based US dollar weakness and bullish technical set up underpin the sentiment around the spot.

•             Flat - closed up 0.2%, as expectations of a Jan BoE cut cooled

•             Inflation data on today and retail sales Friday will be key for sterling

•             Despite bounce daily charts are negative, though at low end of recent ranges

•             Momentum studies, 5, 10 & 21 DMAs head lower and 21 day Bolli bands slip

•             1.2900, December low then 1.2887 lower 21 day Bolli band are major support

 

According to the Analysis, pair is expected to find support at 1.2973 and a fall through could take it to the next support level of 1.2954. The pair is expected to find its first resistance at 1.3033, and a rise through could take it to the next resistance level of 1.3052.

EUR USD

EUR traded higher against USD and closed at 1.1127.

•             EUR/USD barely moved in Asia trading in a 1.1126/31 range

•             Most of the action in regionals as USD moved up on Mnuchin comments\

•             Resistance at 10-day MA at 1.1140 with option selling ahead of 1.1150

•             Large option maturities 1.1100/50 defining recent range

•             Break above 1.1150 targets 61.8 fibo of 1.1240/1.1085 at 1.1181

•             EZ IP later today, but US-China trade deal likely to be main event

According to the Analysis, pair is expected to find support at 1.1111 and a fall through could take it to the next support level of 1.1101. The pair is expected to find its first resistance at 1.1141 and a rise through could take it to the next resistance level of 1.1151.

Economic events of the Day

·         USD EIA Crude Oil Stocks Change

·         USD EIA Cushing Crude Oil Stocks Change

·         USD FOMC Member Harker Speech

 More information about the release time of news and its impact visit Economic Calendar Page!

 

 

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Technical Overview of EUR/USD and USD/JPY and Currency Pair

EUR USD

EUR traded higher against USD and closed at:  1.1094

·         Touch softer - closed up 0.05% after recording a fresh 1.1076 Jan low

·         UK to set out goals for EU trade talks - PM Johnson's spokesman

·         Charts show momentum studies, 5, 10 & 21 DMAs edging lower - negative setup

·         1.1080/85, 61.8% of the Nov-Dec bounce and Jan double bottom held on close

·         Sustained 1.1075 break a bearish signal, next stop 1.1042 76.4% Nov-Dec rise

·         1.1113, 38.2% of the January dip and 5 DMA is initial resistance

·         1.1100 350M, 1.1125 230M, and 1.1140-50 1.5BLN strikes cap

According to the Analysis, pair is expected to find support at 1.1082 and a fall through could take it to the next support level of 1.1076. The pair is expected to find its first resistance at 1.1102 and a rise through could take it to the next resistance level of 1.1108

USD JPY

USD traded lower against JPY and closed at 110.18.

USD/JPY extends losses while taking rounds to 110.00 during early Tuesday. The pair shrugged off the BOJ’s widely anticipated monetary policy decision as risk aversion seems to be in the play.

·         USD/JPY extends the recent losses despite BOJ holding its monetary policy intact while keeping forward guidance on interest rates intact.

·         News of corona virus outbreak recently triggered risk-off; trade-positive news from the Chinese Commerce Ministry failed to please buyers.

·         Geopolitical plays in the Middle East, trade headlines will welcome the US traders returning from the extended weekend.

According to the Analysis, pair is expected to find support at 110.13 and a fall through could take it to the next support level of 110.10. The pair is expected to find its first resistance at 110.21 and a rise through could take it to the next resistance level of 110.24

Economic Events of the Day            

·         JPY BoJ Interest Rate Decision

·         JPY BoJ Press Conference

·         GBP Claimant Count Change

·         EUR ZEW Economic Sentiment Indicator

For More information about the release time of news and its impact visit Economic Calendar Page!  

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