ECB’s officers have started to talk about EUR’s strength, with Governing Council member Ardo Hansson saying that the central bank could end QE “in one step” without any problem, adding, however, that many eurozone countries are not prepared for an interest rate reversal. This Tuesday, German’s inflation figures will take centre stage, while the US will only offer the NY Empire State manufacturing index.
EURUSD Forecast and Technicals:
EURUSD has been consolidating in Asia session between 1.22900 and 1.22500 ahead of Germany data.
EURUSD is being priced at 1.22680 currently. On the H4 chart; the price is above all main Moving Averages. RSI value is 80.
Short term; price will continue its bullish movement as long as it holds above 1.22100. If it breaks below 1.22100, we may see a corrective move towards 1.21500 and 1.20800.
1.23200 and 1.23600 are the next targets of the EURUSD.
Pullbacks are buying opportunities. Possible pullback levels. 1.22300 and 1.22100.
Our mid-term target was 1.38000 and we have reached our target faster than expected.
Soft Brexit: Traders reacted positively to the statement by the finance ministers of Spain and the Netherlands that they support the “soft” version of Brexit.
Today; inflation data for December will be released in the UK, which may have an effect on the dynamics of the British pound. According to preliminary forecasts, the growth of consumer prices may slow down.
We see a bullish bias on GBP Index. And DXY continues to fall.
GBPUSD Forecast And Technicals:
Cable is being priced at 1.37830 currently.
On the H4 chart, we can see the consolidation. If the price cannot remain above 1.38000 we can see a pullback towards 1.37320.
RSI value is 76 and it is not in the overbought area.1.36800 is the main support. And the cable will continue it’s bullish move as long as it holds above 1.36800 support.
Possible pullback levels to use as buying opportunities are 1.37300 and 1.36800.
The next target of the GBPUSD will be 1.38500 and 1.39100.
FACTS AND PATTERNS: SUPPORT ZONE, EMA 50 AND TREND LINE BREAKOUT
CURRENT PRICE: 88.48
POSSIBLE “PREDICTED” PRICE ACTION: The pair formed triple top at 89.08 and pulled back. 89.30 is the support. We have a rising trend line. EMA 50 is located at 88.30. Price may test the EMA 50 and the trend line. Break out of the trend line and EMA ( possible breakout zone is 88.20 ) will carry the price 87.50 and 87.10.
POSSIBLE “PREDICTED” PRICE ACTION: Bullish Gartley formation completed. 87.78 is the Fibonacci retracements of 88.60%. Price tested 88.84 but not touched the Fibo 88.60% at 87.78. It will test 88.33 ( Fibo 76.80% ) If it makes closing above 88.33, the targets will be 88.80 and 89.30. It may reverse from 88.40 and retest 87.78. This will be our area of entry.
CADJPY TRADE IDEA: (MIDTERM )
AREA OF ENTRY: 87.78
STOP LOSS: 87.50
TAKE PROFIT 1: 88.80
TAKE PROFIT 2: 89.30
NOTE: H4 closings below 87.78 would invalidate the setup.
If the price breaks and close above 88.33, you can try LONG with stop loss 88.10 with the same targets.
Pay attention: Your risk ( Stop Loss ) not more than 1% of your account.