Weekly Technical Analysis For December 24th to 28th, 2018

What To Watch Over The Holiday

EUR/USD: 

Last week, the Federal Reserve raised interest rates by a quarter point. However, the Fed reduced their 2019 median forecast for interest rates to 2.9% from a previous estimate of 3.1%, hinting at two rate hikes in 2019. That's below the three rate hikes previously indicated in the Fed's September projections.

In the upcoming week, the US markets will close early on Monday and remain closed for Tuesday. Trading volumes are expected to remain light due to the Christmas holiday. Still, CB Consumer Confidence, New Home Sales and Pending Home Sales will be published in the US.

The US CB Consumer Confidence measures the level of consumer confidence in economic activity which is expected to see an outcome of 133.7. US New home sales are expected to rise to 2.5% in November from -8.9%, a fall in the previous number. The US Pending home sales will also be followed by the market and are predicted to rise to 0.5% m/m in November from a -2.6% fall in October.

Moreover, the German Consumer Prices index is estimated to come out at 2.0% in November, which is lower than the previous number of 2.3%. A lower than expected reading should be taken as negative for the Euro.

The EURUSD pair showed a downward movement and dropped to the 1.1367 daily support level last Friday. However, as long as the price is able to stay above 1.1367, on a daily basis, the fall may be limited and we will see resistance levels at 1.1446 again. On the other hand, if the pair breaks down below 1.1367, the next support level will be placed at 1.1262

Support: 1.1367 - 1.1262 - 1.1188

Resistance:  1.1446 – 1.1531 - 1.1607

GBP/USD: 

The Bank of England left interest rates unchanged as uncertainty over the UK’s exit from the European Union - with little more than three months to go - increases.

Additionally, Britain’s annual economic growth for the third quarter went unrevised. GDP grew by 1.5% on a year-to-year basis in the quarter, unchanged from the preliminary estimate and in line with expectations.

The GBPUSD pair closed last week above the key level of 1.2624. If the price stays above that level on a four hourly basis, we will see the daily resistance level of 1.2712. On the other hand, if the pair drops below 1.2624, we will see 1.2494 as next support level.

Support: 1.2624 – 1.2494 - 1.2414

Resistance:  1.2712 –1.2844 - 1.2961

USD/JPY: 

The USDJPY pair showed a downward movement last week. As long as the currency stays below the daily level of 111.66, on a daily basis, the bearish action may continue and we will see 10.86 as support level again. On the other hand, if the price goes beyond 111.66, the next resistance level can be found at 112.46.

Support: 110.86 – 109.90 - 109.35

Resistance: 111.66 – 112.46 - 113.63

GOLD:

The GOLD price jumped up from the 1243 major support level and showed a bullish action. As long as the yellow metal price sustains above 1256 on a four hourly basis, the upward movement may gain more momentum. Should this occur, we will see resistance levels at 1272 and 1276. Although, if the price falls below 1256, the next support level is holding at 1249

Support: 1256 – 1249 – 1243

Resistance:  1272 – 1276 - 1283

23 Dec 18 (Sun)

09:10 pm


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