EURUSD and GBPUSD Positive Within Range Environments

eurusd chart

  • The US Dollar has NOT produced a more positive tone in December, despite the anticipated progression of tax reform legislation, which has generally lead to other asset classes signalling a “risk on” environment (Equities higher, Bond markets lower).
  • This has allowed the Major global currencies to stage mid-December rallies against the US$ Dollar.
  • For EURUSD, we see an intermediate-term range environment, between 1.1961 and 1.1712, but with the skewed bias shifting to the upside into latter December.
  • GBPUSD is also in both wide and narrow ranges (the wider range between 1.3026 and 1,3658), but again with a slight upside bias into the holiday season and year-end.

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EURUSD Bullish threat

Another advance as anticipated Wednesday through 1.1863 and to probe into the 1.1900/03 resistance area, to sustain Monday’s positive tone up through 1.1781 and 1.1809 resistances, to keep the bias higher for Thursday.

We still see an intermediate-term neutral, broader range theme for December (with the range mow see as 1.1961-1.1712), BUT with growing risk for a bullish shift above 1.1961.

For Today:

  • We see an upside bias through the 1.1900/03 area; break here quickly aims for the key 1.1961 peak and maybe 1.2005.
  • But below 1.1827 opens risk down to 1.1774.

Intermediate-term Range Parameters: We see the range defined by 1.1961 and 1.1712.

Range Breakout Challenge

  • Upside: Above 1.1961 targets 1.2089 and aims higher for 1.2173, 1.2272 and 1.2600.
  • Downside: Below 1.1712 targets 1.1553 and sees risk lower for 1.1311 and 1.1107.

Resistance and Support:

1.1900/03 1.1961*** 1.2005* 1.2034** 1.2089***
1.1827** 1.1774 1.1735** 1.1716/12*** 1.1660**

4 Hour EURUSD Chart

eurusd chart

GBPUSD Positive bias

A solid consolidation Wednesday to build on Tuesday’s dip and rebound (as also seen Monday), still an erratic consolidation from mid-December, but we with a positive bias for Thursday.

We still see an intermediate-term neutral range theme into December (1.3026-1.3658).

For Today:

  • We see a positive tone to aim through 1.3421 and then towards 1.3466; a break here targets 1.3520, possibly towards 1.3549
  • But below 1.3329 aims at the 1.3302/1.3290 support area, maybe towards 1.3220.

Intermediate-term Range Parameters: We see the range defined by 1.3026 and 1.3658.

Range Breakout Challenge

  • Upside: Above 1.3658 aims higher for 1.3841 and 1.4000.
  • Downside: Below 1.3026 sees risk lower for 1.2773 and 1.2587.

Resistance and Support:

1.3421 1.3466* 1.3520* 1.3549* 1.3596**
1.3329 1.3302/1.3290** 1.3220** 1.3181 1.3113

4 Hour GBPUSD Chart

gbpusd chart

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Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.