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20Dec

DAILY TECHNICAL ANALYSIS FOR DECEMBER 20, 2021

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EUR/USD

Current level – 1.1247

The single European currency continues to lose value against the U.S. dollar and, at the time of writing the analysis, the market is facing a test of the support zone at 1.1229. If the bears manage to establish themselves on the market and the breach of the mentioned support is successful, a deepening of the sell-off towards the next significant level at 1.1190 may follow. On the other hand, if the bulls manage to thwart the bears’ plans, the most likely scenario would be for a preservation of the range move between 1.1229 – 1.1366. There is no planned economic news for this week that are expected to affect the market’s volatility.

USD/JPY

Current level –  113.49

The situation with the Ninja remains unchanged, except that we witnessed an unconfirmed breach of the support area at 113.39 during the last trading session for the past week. The subsequent rise in the price of the U.S. dollar against the yen remained limited below the 113.79 resistance. The sentiment at the moment is rather neutral – to maintain the range move during the following days in view of the upcoming holidays and the lack of planned economic news that could affect the volatility of the currency pair.

GBP/USD

Current level – 1.3224

The surprising rate hike by the Bank of England from last week and the following test of the 1.3359 resistance area were not enough to reverse investors’ sentiment. The subsequent reduction in the price continues at the beginning of this week, as at the time of writing, the sterling has focused on testing the support zone at 1.3184. According to the higher time frames, a successful breach of the mentioned level could deepen the sell-off towards the next significant level at 1.2880.

Gold price tests the support base 

Gold price faced temporary negative pressure in the previous sessions to test the support base formed at 1797.00 after breaching it previously, keeping its stability above it until now, accompanied by stochastic reach to the oversold areas, waiting to motivate the price to resume the expected bullish trend on the intraday basis, which targets 1825.15 level mainly.

Therefore, the bullish bias will remain expected in the upcoming sessions unless breaking 1797.00 level and holding below it.

The expected trading range for today is between 1785.00 support and 1825.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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