News

EURUSD and GBPUSD are recovering today

EURUSD chart analysis

During Asian trade, the euro weakened slightly against the dollar. Yields on US short-term bonds are rising by supporting the dollar. In France, the number of newly infected is extremely high. The euro is consolidating to some extent, but it is still “capped” at higher levels, looking down. The Bundesbank recently announced that the German economy could partially slow down this quarter. The number of newly infected with covid-19 introduces new limitations and keeps consumers at home, endangering the economy. Currently, the euro is exchanged for 1.13269 dollars, which is slightly strengthening the common European currency by 0.01% since the beginning of trading tonight.

Bullish scenario:

We are still moving in the triangle, with the fact that we have made a break above the moving averages, and now they are on the bullish side.
We need further positive consolidation that would raise the EURUSD pair above the upper trend line of resistance.
Our next potential resistance is at 1.13830 December maximum.
The pair would form a new monthly higher high if we crossed over it.
After that, the target zone on the upper trend line opens at 1.15000.

Bearish scenario:

We need a negative consolidation that will lower us below moving averages and then test the bottom line of support.
Break EURUSD below it comes this-year low at 1.11850.
In the future, if the pair continues to weaken, we will form new 12-month lows, and our target may be a zone of 1,10000.

GBPUSD chart analysis

During Asian trade, the British pound strengthened its gains against the dollar yesterday. The pound is currently trading at $ 1.34460, which is a 0.05% strengthening of the British currency since the beginning of trading tonight. Post-Brexit tensions over fishing with the EU have had a positive outcome, with Prime Minister Boris Johnson rejecting Britain’s introduction into a new “lockdown.” Today is a non-working holiday (Boxing day) in the UK. We have no economic news from the UK, maybe some political statement by government officials.

Bullish scenario:

We need further continuation of the positive consolidation above 38.2% Fibonacci levels and with the support of the MA20 moving average.
Our next target is the 50.0% Fibonacci level zone at 1.35000, the previous lower high from November.
If GBPUSD continues with the bullish momentum, we can reach a larger resistance zone on the upper trend line at 1.35880. That place coincides with 61.8% Fibonacci level.

Bearish scenario:

We need a new negative consolidation, and a pair pull below 38.2% Fibonacci levels at 1.34180.
We then descend to support at 23.6% Fibonacci levels at 1.33185, with additional support in the MA50 and MA200 moving average.
If the support does not last, we will go lower to the December support zone around 1.32000.

Market overview

Preliminary data from the Ministry of Land, Infrastructure, Transport, and Tourism on Tuesday, Japan’s construction orders grew at a much faster annual rate in November than in the previous month. Orders from the big 50 constructors rose 11.6 percent year-on-year after a 2.1 percent increase in October. Demand grew for the third month in a row. In September, orders increased by 27.3 percent compared to the same month last year.

In November, industrial production in Japan increased by 7.2 percent compared to the month the Ministry of Economic, Trade, and Industry announced on Tuesday.

Following the data release, METI improved its assessment of industrial production, saying it is now showing signs of recovery. On an annualized basis, industrial production improved by 5.4 percent – again exceeding forecasts for growth of 2.5 percent. That was 4.8 percent more than expected, and it was higher than the profit of 1.8 percent in October. Industries that have contributed to the increase include motor vehicles, plastic and iron products, and steel. These gains were offset by the declining production of chemicals and petroleum products. Shipments rose 7.4 percent month-on-month and 3.5 percent year-on-year, while inventories rose 1.7 percent month-on-month and 5.2 percent year-on-year. According to METI’s forecast for industrial production, expectations are to grow by 1.6 percent in December and 5.0 percent in January.

Support

Platform

Spread

Trading Instrument

Subscribe to our newsletter

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News