Pair EURUSD has found support at 1.12000 for now, after which recovery starts and pullback to the current level of 1.12900. The bullish momentum went well, gaining the support of the MA20 and MA50 moving averages. If the support is stable, then we can expect the growth of EURUSD to 1.13500. Bullish scenario:
We need a continuation of positive consolidation and a break above 1.13000.
Then, with the support of moving averages, we continue further to the next resistance zone at 1.13500.
The next higher resistance is at 1.14500, for the next in the zone 1.15000-1.15500.
Bearish scenario:
We need a withdrawal of EURUSD below 1.12500 with a negative consolidation that could jeopardize the previous lower low to 1.11850.
After that, we can expect a decline to new lows this year.
GBPUSD chart analysis
Pair GBPUSD is in a shorter bullish trend today, moving away from the previous lower low to 1.32820 to the current 1.33428. We can draw the upper trend line by joining the previous peaks, and we see that the pair is going above the line. If we see a strong impulse, we can expect further continuation and recovery of the GBPUSD pair. Bullish scenario:
First, we need a break above 1.13500 of the previous resistance.
With current MA20 and MA50 support, we can expect potential recovery and a move to higher levels on the chart.
The next larger resistance zone is at 1.34000, with an additional resistance of the MA200 moving average.
Bearish scenario:
We need a negative consolidation that will bring us back to the previous low zone at 1.33000.
The breakthrough below opens the door for new series of levels this year on the chart.
Market overview
French fishers blocked the port of Calais on Friday, temporarily preventing the entry of two ferries transporting trucks and passengers, in protest of the failure of Great Britain to issue more permits for fishing in British waters. The blockade, which lasted 90 minutes, marked the escalation of the dispute between London and Paris after Brexit over the right to fish in British coastal waters. Britain says that all permits which are not accepted are missing accurate documentation for their issuance. A one-hour protest in Saint-Malo and broader action further east along the French coast risk re-igniting a dispute between the two countries over a system of mutual licensing of fishing vessels. With Britain leaving the European Union, the two sides agreed to establish a licensing system to allow fishing vessels access to each other’s waters. Paris says that London and the Channel Island of Jersey do not respect the agreement depending on the British crown. Futures on the US stock index indicated a decline in the opening of Wall Street after Thanksgiving, and oil reached two-month lows because fears of a possible variant of the coronavirus resistant to the vaccine forced investors to rush to a safe haven. Scientists say that this variant, discovered in South Africa, Botswana, Israel, and Hong Kong, has an unusual combination of mutations, may avoid an immune response, and may be transmissible. The European Commission has also stated it wants to consider suspending travel from countries where a new variant has been identified. The WHO has warned that such restrictions are not imposed hastily. The WHO convenes a meeting of experts on Friday to assess whether the new variant is a “worrying variant.” It will take several weeks to understand the impact of the variant, a spokesman said.
