Daily Forex Technical Strategy (Fri 20 Dec)
Kelvin Wong December 20, 2019 3:06 AM
GBP/USD – A potential minor rebound is on the cards
click to enlarge chart
- The pair has staged the expected slide and hit the short-term target/support of 1.3000/2970 as per highlighted in our previous report (click here for a recap).
- Fractal/Elliot Wave analysis suggests a potential minor rebound to retrace the on-going slide from 13 Dec 2019 high of 1.3515 as the price action of the pair is approaching a Fibonacci retracement/expansion cluster at 1.2945.
- In addition, the hourly RSI oscillator has traced out a bullish divergence signal at its oversold region. Flip to a bullish bias with 1.2945 as the short-term pivotal support for a potential minor rebound to target the intermediate resistance at 1.3215 max 1.3300 before another downleg materialises.
- However, an hourly close below 1.2945 invalidates the rebound scenario for a continuation of the slide towards the upper limit of the key medium-term support at 1.2750 (lower boundary of the ascending channel from 03 Sep 2019 low & 50% Fibonacci retracement of the up move from 03 Sep low to 13 Dec 2019 high).
EUR/USD – 1.1200 remains the key resistance to watch
click to enlarge chart
- No major changes on its price action configuration, as the pair hit the first short-term support at 1.1110 and traded sideways thereafter.
- 1.1200 remains the pivotal resistance for a potential push down to test the next near-term support at 1.1040 within a range configuration. However, a daily close above 1.1200 sees a bullish breakout for a further push up towards the next intermediate resistance at 1.1285.
USD/JPY – Bulls are still hesitant as liquidity thins ahead of year end
click to enlarge charts
- No change, 109.70 remains the key short-term pivotal resistance for a potential push down to retest 108.95 and below it sees a further slide towards the minor range support area of 108.30/107.90.
- However, an hourly close above 109.70 negates the bearish tone for a further squeeze up to test the 110.50 major resistance.
AUD/USD – Neutral stance intact
click to enlarge chart
- Continued to trade sideways above the pull-back support of the former major descending channel resistance from 03 Dec 2018 high. Remain neutral between 0.6930 and 0.6860. An hourly close above 0.6930 sees a further push up to target the next resistance at 0.7080 (18 Jul 2019 medium-term swing high).
- On the flipside, a break below 0.6860 invalidates the bullish breakout for a slide back into the range configuration to retest 0.6755/6720 support.
Charts are from eSignal
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.