Technical Levels Of Major Pairs

Technical Outlook: USDJPY – Rising Downside Risk On Repeated Rejection At Cloud Top (05-Dec-2017    at   02:50:15 pm)

The pair ticked higher on Tuesday, leaving temporary footstep at 112.36 (Mon/Tue lows) intact but remaining below initial barrier at 112.78 (daily Kijun-sen).

 

XAU/USD Analysis: Moves Horizontally Near 1,276 (05-Dec-2017    at   02:44:46 pm)

As it was anticipated, yesterday’s trading session the exchange rate spent in a flat movement between support and resistance zones located at the 1,270 and 1,275 marks. As long as there are no substantial news coming from the United States, the pair is not expected to jump above the 1,280.42 level that represents location of the monthly PP and the 100-hour SMA. The similar assumption holds for the 1,270.00 mark that is crossed by the bottom boundary of a dominant ascending channel. In larger perspective it is still unclear whether the above dominant pattern will sustain or it will be broken amid the pressure from a medium-term descending channel. Most probably until the market sentiment turns bearish the rate will manage to keep gradual advance.

 

USD/JPY Analysis: Meets Strong Resistance At 113.00 (05-Dec-2017    at   02:43:54 pm)

As it was suggested yesterday, the currency exchange rate made a fully-fledged breakout from a rising wedge formation after encountering resistance posed by the 50% Fibonacci retracement level at 113.00. However, the plunge was not deep, as southern side was secured by two moving averages and another 50% retracement level located at 112.45. As long as there are no disappointing political news coming from the United States, the rate is projected to keep climbing back to the 113.00 mark. But before that it might be temporarily stopped by the monthly PP at 112.70. Nevertheless, the rising 55- and 100-hour SMA are expected to continue stimulating the upwards movement and simultaneously secure the bottom boundary of a currency active junior ascending channel.

GBP/USD Analysis: Jumps Up And Down From Political News (05-Dec-2017    at   02:35:41 pm)

In general, previous trading session the currency rate spent moving downwards, as expected. Apart from rebound from the two month maximum at 1.3550, the drop was driven by anxiety over affirming vote on tax bill as well as new report that no agreement on Brexit has been reached yet. From technical point of view, today the pair is squeezed between the 50% Fibonacci retracement level, the 55- and 100-hour SMAs from the top and the weekly PP plus the 200-hour SMAs from the bottom. These boundaries point out of further correction of the cable. Theoretically, one of the scheduled data releases for today might stimulate the rate to make a breakout. However, this scenario seems unlikely, as markets are mainly focused on political news

EUR/USD Analysis: Still Trades Near 1.1870 (05-Dec-2017    at   02:30:14 pm)

Despite positive sentiment related to successful vote on tax bill by the US Senate, the pair both started and ended the day near the 1.1870 mark. The reason for that is related to combined resistance formed by the 55-, 100- and 200-hour SMAs and support provided by the lower trend-line of a one-month long ascending channel. Unless the rate receives an impulse from some fundamental event, such as the Non-Manufacturing PMI data release, it is likely to spend another day in a similar horizontal movement. Apart from that, there is a need to take into account two additional junior descending channels. It is highly possible that their framework taken together with the above technical indicators will create a bearish pressure strong enough to dissolute the ascending channel eventually.

EUR/NOK 1H Chart: Euro Points To Weakness (05-Dec-2017    at   02:28:19 pm)

The common European currency has been appreciating against the Norwegian Krone in an ascending since late September. This pattern has guided the pair up to the 9.9154 mark—its highest level during the past several years. Apart from this channel, the pair is likewise trading in a junior one valid since November 21. Its slope is relatively steep; however, as apparent on the chart, the Euro has failed to initiate a solid wave up. This might suggest that a change in the bullish sentiment might occur soon. This assumption is likewise supported by technical indicators. In terms of support, the pair might hinder near the 9.75 area near where the monthly PP, the 200-hour SMA and the weekly S1 are located.

GBP/CHF 1H Chart: Pair Tests 2017 High (05-Dec-2017    at   02:27:41 pm)

Following a steady increase in price since late August, GBP/CHF has entered a six-week period of consolidation. As a result, the Pound has been fluctuating against the Swiss Franc in the 1.3325/1.2972 range. The pair tested the former barrier two times during the past two trading sessions. Technical indicators suggest that the same scenario might occur today, as well. However, given that this level is a 2017 high, it might provide strong resistance, especially when reinforced by the weekly R1. Conversely, it is also possible that the Pound falls down to the weekly PP and the 200-hour SMA circa 1.3160 prior to re-testing the aforementioned high. By and large, it is expected that the pair moves lower in the medium term, possibly down to the 1.2972 area.

WTI Oil Futures In Bearish Phase But Maintain Medium-Term Neutral Outlook (05-Dec-2017    at   02:02:14 pm)

WTI oil futures have unwound almost all of the gains made from the recent rally off the key 57 level. The near-term bias is to the downside and last Friday’s 58.86 high remains unchallenged.

Forex Technical Analysis: EUR/USD, USD/JPY, GBP/USD (05-Dec-2017    at   01:49:49 pm)

EUR/USD The forecast is for another test of the support level at 1.1808 down to 1.1740. In positive direction the next resistance level will be at 1.1932 and after that at 1.1962.

Technical Outlook: GBPUSD – Overall Bullish Bias Sees Deeper Correction Preceding Fresh Rally (05-Dec-2017    at   01:40:29 pm)

Cable stands at the back foot in early Tuesday's trading and pressuring Monday's low at 1.3412, n bearish acceleration from Asian high at 1.3481.

XAUUSD Intraday Analysis (05-Dec-2017    at   01:27:08 pm)

XAUUSD (1275.40): Gold prices continue to remain flat with price action showing strong consolidation near the 1274 level of support. Failure to establish a clear trend suggests that the sideways price action might continue. Below the 1274 support, gold prices could be at risk of posting a decline towards the 1262 support level. To the upside, the 1285 resistance is likely to maintain the gains in the near term. On an intraday basis, gold prices could be seen posting a modest rally to fill Friday's gap at 1280.46 but further gains beyond this could be limited.

USDJPY Intraday Analysis (05-Dec-2017    at   01:26:25 pm)

USDJPY (112.49): The U.S. dollar rose to a one-month high yesterday but price closed bearish towards the end of day. Failure to maintain the gains saw USDJPY reversing gains below the 113.00 handle. We expect the near term declines to push USDJPY back towards the 112.04 level of support. The unfilled gap from Friday's close also resides close to this level which validates this view. Alternately, if the bullish momentum resumes, we could expect USDJPY to test the 113.00 resistance level on a convincing close above 112.65 level of minor support and resistance.

EURUSD Intraday Analysis (05-Dec-2017    at   01:25:32 pm)

EURUSD (1.1873): The EURUSD closed almost flat yesterday after gapping down on Monday's open. The currency pair however remains supported to the upside in the short term. The decline to the 1.1843 support is consistent with this view. There is scope for the euro currency to retrace the declines and probably rise towards Friday's close at 1.1898 to fill the gap. Price action remains supported above 1.1843 in the near term. Resistance at 1.1920 is likely to keep a lid on any further gains. A breakout from this range is expected which could set the near term bias in the currency pair.

USDJPY Still Bearish Below 112.70 Level (05-Dec-2017    at   12:53:00 pm)

The U.S dollar is starting to recover upside momentum against the Japanese yen, after falling towards the 112.40 support level during the Asian session. The USDJPY pair currently trades around the 112.60 level, after giving way to strong technical selling earlier on, as the U.S dollar index slipped back from Monday's price-high. The macroeconomic calendar will remain empty for Japan on Tuesday, however later today we see a raft of Manufacturing related data coming from the United States economy.

GBPUSD Intraday Bearish Below 1.3450 Level (05-Dec-2017    at   12:52:02 pm)

The British pound has moved lower against the U.S dollar, hitting 1.3418, before recovering, as the UK failed to reach a Brexit deal with the EU on Monday. British Prime Minister has until December 15th to finalize a deal with the European Union, and now needs to work with the Northern Irish coalition party leader, to find a solution to border issues. GBPUSD price-action currently holds above the 1.3450 level, although bearish pressure is mounting on sterling. Traders now look to the release of the UK Services PMI for the month of November, for the next directional move in the pair.

GBPUSD In Bullish Phase But Rally Pauses On Overbought Conditions (05-Dec-2017    at   12:16:26 pm)

GBPUSD is in a bullish phase in the near term and is poised to re-test the September peak at 1.3656. In the medium term, the pair is neutral and appears to be trapped between the key levels of 1.3000 and 1.3600.

Daily Wave Analysis: USD/JPY, GBP/USD Build Sturdy Trend Channels (05-Dec-2017    at   12:05:48 pm)

The USD/JPY is in an uptrend channel which could be part of a larger bullish wave 3 pattern. This is invalidated if price breaks below the support trend line (green) of the uptrend channel. A bullish breakout above the channel resistance would confirm the bullish breakout.

Elliott Wave View: Nasdaq Short Term (05-Dec-2017    at   10:55:35 am)

Nasdaq Short term Elliott Wave view suggests that the rally to 6429.5 ended Intermediate wave (3). Intermediate wave (4) pullback is currently in progress to correct cycle from 8/21 low (5753.6) in 3, 7, or 11 swing before Index resumes the rally. Subdivision of Intermediate wave (4) is unfolding as a double three Elliott wave structure where Minor wave W ended at 6246 and Minor wave X ended at 6391.75. Minor wave Y of (4) is in progress towards 6096.66 – 6209.70 area, then Index should resume the rally higher from there or bounce in 3 waves at least. We don’t like selling the proposed pullback and expect buyers to appear from the above area for at least a 3 waves bounce as far as pivot at 8/21 low (5753.6) stays intact.

Market Morning Briefing: Euro Saw A Low Of 1.1829 Yesterday (05-Dec-2017    at   08:58:49 am)

Euro (1.1874) saw a low of 1.1829 yesterday, thereby testing immediate support on the daily candle charts, but rose to close at 1.1864. This support (which would now be around 1.185-1.19 levels) seems to be holding strong for now and only a decisive move in dollar strength could bring about of a break of this support to test new support at approx 1.1775 on the 3 day candles. Dollar weakness could see breach of resistance (1.19) on the weekly line chart and a move towards 1.20-1.21.