DAILY TECHNICAL ANALYSIS FOR DECEMBER 06, 2021petar skakalov
Current level – 1.1292
The euro ended last week almost unchanged against the dollar. The downtrend is violated and it seems that the pair is preparing to change its direction. The bulls managed to form a support at around 1.1260. The first resistance is found at around 1.1307, and the more serious obstacle for the buyers is the level of 1.1366. There is a change in market sentiment and a possible breach of 1.1366 would pave the way for the pair towards 1.1460. In a scenario, in which the bears return to the market and the support at 1.1260 is disrupted, there may be a new wave of sell-offs leading to a breach of 1.1200 and a follow-up attack on 1.1000. This week, increased trading activity can be expected around the announcement of the estimated GDP data for the euro area, scheduled for Tuesday at 10:00 GMT.
Current level – 112.95
The market currently lacks any clear direction and trading remains locked between the zones of 113.80 and 112.75. It is still possible for the market to renew the initial bearish momentum as, at the time of writing the analysis, prices are hovering just under the resistance at 113.04. At the moment, the 112.75 zone remains the main support. If it is overcome, it is possible that the bears will test the next level at around 112.00.
Current level – 1.3232
Difficulties for the sterling continue after the breach of the support at 1.3296. The bears tested the support at around 1.3206 for the second time, but failed to breach this level. The market shows divergence and it is possible that declines could slow down and the market could enter a range phase. When the bulls enter the market, a test and a breach of 1.3296 is a probable scenario. The trend coming from the higher time frames remains negative and new declines are still not ruled out. Should a breach of 1.3206 happen, an attack on the next zone at around 1.3150 can also be expected. Any major pullbacks should remain limited below 1.3360.
Gold price loses momentum
Gold price traded with clear positivity on last Friday, to breach 1770.00 and head towards potential test to 1797.00, but we notice that the EMA50 forms negative pressure against the price, to stop the bullish bias, accompanied by stochastic loss to the positive momentum and showing overbought signals.
Therefore, these factors encourage us to suggest the bearish bias for today, and the targets begin at 1770.00 and extend to 1734.00 after breaking the previous level, taking into consideration that the continuation of the rise and breaching 1797.00 will stop the expected decline and lead the price to achieve additional gains on the intraday basis.
The expected trading range for today is between 1760.00 support and 1797.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis