The series of pre-holiday sessions on Asian trading exchanges are marked by fears and hopes related to the implementation of the fiscal reform by the Donald Trump administration. On currency market, EUR/USD breaks to 1.1901, USD/JPY is about to test 113.74 and GBP/USD is in the middle of the range at 1.3366. Gold is at $ 1,265, Crude Oil is trading at 58.10.
On Thursday 21st of December, the event calendar is light in important news releases, but the global investors will keep an eye on Public Sector Net Borrowing data from the UK, Final GDP and Philly Fed Manufacturing Index data from the US, Consumer Price Index, and Retail Sales data from Canada.
EUR/GBP analysis for 21/12/2017:
A series of political shuffles at the halfway point of the week did not result in a change in sentiment both on the currency market and on the debt market. Loud preparation of investors for the upcoming Christmas season was clearly drowned out by the speech of Michel Barnier, the chief negotiator on the issue of Brexit on behalf of the EU, who announced the end of the transition period from the last day of 2020. Moreover, that date, coinciding with the end of the EU's seven-year budget period and 21 months after Britain departs the EU, had long been expected as the target endpoint of the transition. The EU will also offer Britain a non-voting place at some meetings where decisions may affect specific issues and will set up special arrangements for a UK role in setting annual EU fishing quotas.
Let's now take a look at the EUR/GBP technical picture at the H4 time frame after the news was released. The bulls have managed to break out above the technical resistance at the level of 0.8868 and it looks like the price is heading towards the recent local highs at the level of 0.8991. Nevertheless, the market conditions are starting to look slightly overbought despite a decent upward momentum. The nearest support is seen at the level of 0.8868.
Market Snapshot: DAX in full-reversal mode?
The price of German DAX index has clearly reversed from the resistance at the level of 13,336 and is violating all the supports on its way down to the level of 12,953. The Head & Shoulders bearish scenario still remains valid and the drop might accelerate when the price will break below the level of 12,809.
Market Snapshot: GBP/USD reverses again
The price of GBP/USD has reversed down after another test of the 61% Fibo at the level of 1.3415 and now is trading in the middle of the zone. The key technical support zone is seen between the levels of 1.3321- 1.3341.
No comments:
Post a Comment