EURUSD chart analysis
During the Asian EURUSD trade, the euro weakened against the dollar. The Bundesbank announced that the German economy could slow down this quarter, as the number of newly infected with covid-19 introduces new restrictions and keeps consumers at home, which is holding back the economy. Yields on long-term U.S. bonds are on the rise again (since the beginning of this week). During the European trade, the euro was exchanged for 1.13100 dollars, representing the strengthening of the European currency by 0.19% since the beginning of trading tonight. At 4 p.m., the Conference Board will release a December U.S. Consumer Sentiment Indicator.
Looking at the chart on the daily time frame, we see that the pair in consolidation is around 1.13000, and now we need a smaller bullish momentum to get out of this triangle.
We need a break above 1.14000 to say that the EURUSD recovery has begun.
At the 1.14000 level, the MA50 moving average creates an additional obstacle.
Going above, we go further to 1.15000 levels hoping that we will get support for further continuation.
Stronger resistance awaits us in the zone around 1.17000 with an MA200 daily moving average.
We need a negative consolidation and withdrawal of EURUSD below 1.12000.
Then we test this year’s low at 1.11860, and if we see a break below, then we can expect the pair to drop to 1.10000 higher potential support.
GBPUSD chart analysis
During Asian trading, the British pound consolidated yesterday’s gains against the dollar. For now, Prime Minister Boris Johnson has rejected the introduction of Great Britain in the new “lockdown” (at least until the end of the upcoming holidays). In the middle of European trading, the pound is exchanged for 1.33100 dollars, representing the strengthening of the British currency by 0.39% since the beginning of trading tonight. We can say that GBPUSD found solid support at 1.32000 and moved from this year’s low to 1.31600. With the current MA20 support, we can expect a further potential recovery of GBPUSD.
Looking at the graph on the daily time frame, we see that we will soon encounter resistance in the 1.34000 zone, and here we test the previous breakpoint to lower levels.
With the MA20 moving average, we expect to continue further towards 1.35000 levels until the next MA50 moving average.
Break GBPUSD above brings us to the upper resistance line at 1.36000, and MA200 awaits us at the 1.37000 level.
We need a new negative consolidation that will bring us back to the previous support zone of 1.32000.
The break below opens new lows for us this year, and we expect more support at the 1,300,000 psychological level.
AUDUSD chart analysis
During Asian trade, the Australian dollar weakened against the US dollar. “Risk on” sentiment prevailed in the financial market yesterday, so Aussie also “jumped” because the fears of the “omicron” variant were (temporarily) put in the background. During the European trading, the Australian dollar strengthened and traded by 0.71750 US dollars, representing a strengthening of the Aussie by 0.35% since the beginning of trading tonight. We are approaching the resistance zone at 0.72000, and we expect a positive outcome and continued strengthening of AUDUSD.
Looking at the chart on the daily time frame, we see that the pair is testing resistance at 072000, and we need a break above to continue.
The next potential resistance is in the zone around 0.73000, and the additional resistance is the MA50 moving average at that level.
We will have previous bearish consolidation in the zone around 0.74000 and a breakpoint below MA50.
The MA200 awaits us in the 0.75000 zone, while our main target in this time frame is the upper trend line.
We need a new negative consolidation and withdrawal to support at 0.71000.
The break below this support brings us to this year’s low of 0.69932.
Additional support is the bottom trend line that can break this bearish trend.
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