Technical Analysis of Forex Majors – December 18th, 2019

Technical Analysis of Forex Majors – December 18th, 2019

EUR/USD

EUR/USD has reached the previous target of 1.118 USD and currently starts to look bearish again as a rejection for further upside was seen in the past 24 hours after the price tested 1.11-1.1115 USD support area and set a new lower high.

Additionally, several day trend line is currently being tested for support and once broken would further confirm a potential trend reversal and, therefore an entry for a short position could be made once breakout-pullback to the upside is made. On the downside, 1.11-1.115 USD support area is very close by, however, it can be used as a clear confirmation for further bearishness this month.

Long position right now would not be recommended as the price has made a lower high and not much upside can be seen if it is reached once again.

EUR/USD 4H:

EURUSD 4 Hours Technical Analysis 18 Dec 2019

USD/JPY

USD/JPY has reached the first previous target around the previous high of around 109.7 JPY and currently seems to be consolidating in preparation for a retracement.

Therefore, a short position can be considered with the target or around 108.8-109 JPY, which would mean a potential move of around 0.4-0.6% and still mean a higher low being made along the overall several month bullish trend.

Since the previous high was not clearly broken, we could let the target move even lower if bearish momentum persists around the target area as there might be a potential reversal of the trend in the upcoming days with a lower low.

USD/JPY 4H:  

USDJPY 4 Hours Technical Analysis 18 Dec 2019

GBP/USD

GBP/USD has traded in a very volatile fashion in the past days s it increased from 1.31 USD support to the 1.35 high in just 2 4 hour candles, followed by a complete retracement back to 1.31 USD support and 100 period MA blue line.

The overall trend is still bullish, however, right now it would be best to stay neutral for the price of GBP/USD and allow the volatility to settle down and build a base for the next major move.

GBP/USD 4H:

GBPUSD 4 Hours Technical Analysis 18 Dec 2019

USD/CHF

USD/CHF continues to move lower in the past days and currently has reached 0.98 CHF support and clearly broken previous lows, therefore, indicating a major trend reversal to the downside.

Retracement is needed in order to consider the further short position and best would be to stay neutral until then. Retracement target where a short position could be made once again can be seen around the area between 0.985-0.99 CHF in addition to both 100 and 200 MA`s, currently located around 0.98946 and 0.99066 CHF respectively.

After, the next target can be seen around 0.972 CHF and would offer a potential downside of at least 1.35% and likely even more, depending on how deep the retracement to the upside is.

USD/CHF 4H:  

USDCHF 4 Hours Technical Analysis 18 Dec 2019

USD/CAD

On the 4H chart, we can see USD/CAD still continuing to move in a very bearish trend and establishing a clear descending resistance trendline that is currently being tested.

Therefore, a short position could be entered in expectation for further lower low being made in the upcoming 24 hours. Next major support of 1.305 CAD will likely not be reached, however, minor resistance was previously seen around 1.31 CAD and would offer a decent 0.46% of downside if reached from the current price with a good risk/reward potential when considering that the stop could be placed around 1.319 CAD.

USD/CAD 4H:

USDCAD 4 Hours Technical Analysis 18 Dec 2019

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