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21Dec

DAILY TECHNICAL ANALYSIS FOR DECEMBER 21, 2021

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EUR/USD

Current level – 1.1274

After the sell-off was limited by the support level at 1.1229, the euro regained some of its recent losses and tested the close resistance at 1.1294. At the time of writing the analysis, the test seems to be unsuccessful, but if the bulls manage to gain enough momentum and successfully breach it, the pair will most likely test the target at 1.1360. If the bears re-enter the market, a new successful attack on the support zone at 1.1229 would further deepen the decline towards the level at 1.1191 and would strengthen the negative expectations for the future path of the EUR/USD.

USD/JPY

Current level –  113.52

Neither the bulls nor the bears managed to prevail and the Ninja continued to trade in the zone between 113.39 and 113.79. A bullish move above the aforementioned zone could easily pave the way for a test of the next target at 114.17. If this test is successful as well, then a rally towards 114.80 is likely to develop. In the negative direction, the first support is still the level at 113.39, followed by the critical zone at 112.58.

GBP/USD

Current level – 1.3208

The support zone at 1.3184 managed to resist the bearish attack from yesterday and the Cable continued to trade above the mentioned level. If the bulls prevail, a corrective move could lead to a test of the first resistance at 1.3282, followed by the upper target at 1.3359. If the bears gain enough momentum and manage to breach the support zone at 1.3184, then the Cable will most likely suffer more losses and head towards levels at around 1.3100.

Gold price closes negatively

Gold price ended yesterday below 1797.00, to hint a potential return to decline, but we notice that the EMA50 attempts to protect the price from suffering more losses, while stochastic shows clear positive signals now.

Therefore, this contradiction between the technical factors makes us prefer to stay neutral until we get clearer signal for the next trend, noting that breaching 1797.00 and trading above it again will reactivate the bullish trend scenario that its next target located at 1825.15, while breaking 1785.00 represents negative factor that will press on the price to achieve additional decline that targets testing 1770.00 initially.

The expected trading range for today is between 1775.00 support and 1810.00 resistance.

The expected trend for today: Depends on the above mentioned levels

Source: Technical analysis

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