EURUSD and GBPUSD use a weak dollar, recording gains
EURUSD chart analysis
During Asian trade, the euro weakened against the dollar. In France, the number of newly infected is close to an alarming 100,000 on a daily basis. Yesterday, the euro was in a rush because “risk-on” sentiment prevailed on the financial market. Pfizer has received regulatory approval for its anti-covid pill. The December Consumer Sentiment Indicator of the December Conference Board showed a much more optimistic view of U.S. consumers for the coming period. However, the Bundesbank recently announced that the German economy could slow down this quarter. The number of newly infected with covid-19 introduces new restrictions and keeps consumers at home, hindering the economy. Currently, the euro is being exchanged for 1.13280 dollars, representing an imperceptible growth of the common European currency by 0.08% since the beginning of trading tonight. At 14:30, the price (PCE) index of personal consumption for November will be published, a favorite price indicator monitored by the U.S. Federal Reserve. Also, a figure from the USA on orders for durable consumer goods will be published.
- We need to continue the current positive consolidation and a break above the upper trend line.
- We have current support in the MA20 daily moving average.
- The first resistance is 1.14000 level with MA50 moving average, then 1.15000 psychological level.
- In the zone around 1.17000, we find the MA200 moving average, and if EURUSD makes a break above, then we can expect a stronger bullish trend.
- We need a new negative consolidation and a break below the bottom line of support.
- Then we test this year’s minimum at 1,11860, and with stronger bearish pressure, there is a high probability that we will descend to lower levels on the chart.
- Our psychological support zone is 1,10000, the last time we were there was in May last year.
GBPUSD chart analysis
During Asian trade, the British pound continued to strengthen against the dollar. Currently, the pound is exchanged for 1.3410 dollars, representing a strengthening of the British currency by 0.56% since the beginning of trading tonight. Prime Minister Boris Johnson rejected the introduction of Great Britain in the new “lockdown” at least until the end of the upcoming holidays, which is warmly welcomed. In addition, the risk market has been dominated by “risk-on” sentiment since yesterday, as worries about the “omicron” variant subsided after Pfizer received approval for its pill against covid. The US Consumer Sentiment Indicator for the December Conference Board showed a much more optimistic view of consumers for the next period yesterday afternoon. At 14:30, will publish the price (PCE) index of personal consumption for November, a favorite price indicator monitored by the US Federal Reserve.
- We need to continue this positive consolidation with the current support of the MA20 moving average.
- Our first next resistance is at a 1.35000 psychological level, with an additional resistance MA50 moving average.
- The main target and obstacle to a stronger bullish trend is the upper resistance line at the 1.36000 level.
- A break above this line will boost bullish optimism, and this could take us to the next resistance zone of 1.37000-1.38000, with the MA200 as an additional obstacle to further continuing to the bullish side.
- We need a new negative consolidation and withdrawal of GBPUSD below the MA20 moving average.
- After that, we test the previous support zone around 1.32000, and if it does not last, we go down to the large support zone at the 1.30000 level.
- Additional support at the 1,30000 level is the lower trend line to prevent further lowering of GBPUSD.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.