DAILY TECHNICAL ANALYSIS FOR DECEMBER 13, 2021petar skakalov
Current level – 1.1309
The European common currency gained some ground against the U.S. dollar and the pair tested the resistance zone at 1.1307. During the early hours of today`s trading, the price is hovering above the mentioned zone and, if the breach is confirmed, a test of the important target at 1.1366 would be the most probable scenario. If the latter succumbs to the bullish pressure, the positive expectations for the future path of the EUR/USD would strengthen and a rally towards 1.1462 is likely to develop. If the bears take control of the market, the first support can be found at the level at 1.1259, followed by the lower one at 1.1205. Among the important news for traders this week is the expected Fed interest rate decision (Wednesday; 19:30 GMT), as well as the European Central Bank interest rate decision (Thursday; 12:45 GMT) and the expected U.S. data for for the initial jobless claims (Thursday; 13:30 GMT).
Current level – 113.52
The sentiment remains unchanged as the USD/JPY continued to trade in the zone between 113.04 and 113.79. А breach оf the latter zone could easily pave the way for a test towards the next target at 114.50, where another breach could continue the recovery towards the zone at 114.90. If the bears prevail and breach the 112.75 zone, then this would strengthen the negative expectations for a move towards the levels from September 2021 at around 112.00.
Current level – 1.3246
The support zone at 1.3206 withheld the bearish attack and, at the time of writing the analysis, the currency pair is hovering around the level at 1.3247. A successful breach of the resistance at 1.3296 could continue the correction, but only a breach of the upper target at 1.3360 would lead to a change in the current expectations of the market participants. Worse-than-expected data for the U.K. CPI (Wednesday; 05:00 GMT) could encourage the bears to re-enter the market. A breach of the mentioned zone at 1.3206 could deepen the decline and would easily lead to future losses for the pound against the dollar. The announcement of the Bank of England interest rate decision (Thursday; 12:00 GMT) should lead to an increase in the volatility of the currency pair.
Gold price hits the first target
Gold price bounced bullishly after touching the first waited target at 1770.00, to retest the broken support of the bearish flag pattern, accompanied by stochastic loss to the positive momentum clearly, waiting to resume the bearish trend and break the mentioned level to head towards 1734.00 as a next negative target.
Therefore, the overall negative scenario will remain valid for the upcoming period unless the price rallied to breach 1797.00 and hold above it.
The expected trading range for today is between 1760.00 support and 1800.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis