Technical Analysis of Forex Majors – December 12th, 2019

Technical Analysis of Forex Majors – December 12th, 2019

EUR/USD

EUR/USD has experienced very strong bullish momentum in the past days after 50% Fib retracement from the previous upswing was reached briefly on the 6th of December, which offered a good entry opportunity and resulted in a significant gain to the upside as expected during the previous market analysis.

The major target can still be seen around 1.117 USD, however, it is advisable to take part of the profits around the current price level and potentially re-enter once a deeper retracement and retest of 1.111-1.109 USD previous resistance, now acting as a support is made as the price has extended far away from the previous support in a relatively short period.

EUR/USD 4H:

EURUSD 4 Hours Technical Analysis 12 Dec 2019

USD/JPY

Not much has changed for USD/JPY as it continues to consolidate near previous lows in addition to the ascending support trend line that was confirmed with the third and fourth touch earlier this month. Both 100 and 200 MA`s still act as a strong resistance and could be used as an indication for further upside to come once broken. Alternatively, entry could be made around the current price level as further downside seems unlikely and the price continues setting higher lows

The next major target is still seen around 110.6-110.7 JPY and would mean a potential gain of around 1.95% if reached. Additional resistance level between can be seen around 109.9 JPY and, if reached, would still offer a good potential reward.

Therefore, we are bullish for USD/JPY and expect further upside to come in the upcoming weeks.

USD/JPY 4H:

USDJPY 4 Hours Technical Analysis 12 Dec 2019

GBP/USD

GBP/USD currently continues to move higher after breaking above 1.317 minor resistance and setting a new monthly high around 1.321 USD.

Entry right now is not advisable as the price has extended too far and a short position would mean a trade against the major trend, however, with decent potential risk/reward. Therefore, a retracement towards previous major resistance turned support area around 1.3 USD is needed before a long position can be made with a very good risk/reward potential. Additionally, we can see 200 MA green line acting as additional support after next week and therefore strengthening potential entry.

Therefore, we are short-term bearish and mid-term bullish and entry can be made once a decent retracement towards 1.3 USD level is made.

GBP/USD 4H:

GBPUSD 4 Hours Technical Analysis 12 Dec 2019

USD/CHF

USD/CHF has experienced a very bearish indication during the past days as the price moved below 0.984-0.985 CHF previous major support in a clear way.

We expect more bearish momentum to be seen in the upcoming months, however, as of now, the price has extended very far to the downside without a clear retracement and we expect some upside to come next week as the price regains some of the loss, however, 0.98 CHF next support is not reached and some more downside could likely be made.

Therefore, it is best to stay neutral for now and wait for a retracement in order to enter a short position in the expectation that the current trend has indeed reversed to the downside.

USD/CHF 4H:

USDCHF 4 Hours Technical Analysis 12 Dec 2019

AUD/USD

AUD/USD has experienced very strong bullish momentum and after finding support around 0.68 USD, reversed back to the upside and currently tests 0.688 USD resistance.

Since the overall several month trend is still bearish and the price has further retraced to the upside - close to several month resistance trend-line, a short position could be made as we expect further downside to come in the upcoming weeks.

The next major target can be seen around 0.67 USD and would mean a good downside potential of around 2.67%, if reached from the current price. Between, additional support levels can be seen around 0.676 and 0.68 USD and potentially used to take some of the profits.

AUD/USD 4H:

AUDUSD 4 Hours Technical Analysis 12 Dec 2019

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