Trading forecasts for December 18, 2013
2013-12-18
EUR/USD: The EUR/USD remains a bull market is spite of the current equilibrium phase in the price. The indicators on the chart support the existence of the bulls’ domination, and it is very much likely that the resistance line of 1.3800 would be tested again and again until it is eventually overcome.
USD/CHF: This currency trading instrument remains a bear market in spite of the current equilibrium phase in the price. The indicators on the chart support the existence of the bears’ domination, and it is very much likely that the support level of 0.8850 would be tested again and again until it is eventually overcome.
GBP/USD: This pair has continued its weakness; and the upward bounce that is currently happening could mean another opportunity to buy a rally in the context of a downtrend. Indeed, the GBP has been a weak currency and the sell signal here would continue to be valid for as long as the price remains below the EMA 56 and the RSI period 14. The current rally could be rejected at the accumulation territory of 1.6300 and the price could fall down further from there.
USD/JPY: The USD/JPY has moved largely sideways since Monday. Being above the demand level of 102.50 (and of course, above the EMA 11), the price could rise upwards when a directional movement begins in the market.
EUR/JPY: This cross is in a clear uptrend despite the fact that the price has been moving largely sideways since Monday. It would not be a surprise when the price ends up closing above the supply zone of 142.00 before the end of this week.
AUD/USD analysis for December 18, 2013
2013-12-18
AUD/USD Elliott Wave
For the last few days, the AUD/USD pair has been trading downwards, impulsive wave 5 (coloured blue) of the bigger wave 1 (coloured green) has been developing. Yesterday, during the Asian and European session we could observe descending 0.8957 towards the 0.8881 level and we can consider this as the end of the 1 wave (coloured green). Therefore, during the New York session, this commodity pair did not manage to hold this level and the price has retraced back to 0.8927 level. At the moment, the USD/CAD pair is trading around 0.8927 level and we are expecting to see more upward movements in the next few days. In accordance with our wave rules and taking into account that wave 2 should retrace 50% of wave 1 we can define the potential targets with measuring wave 1 with take profit at 0.9316 (50% of wave 1). To reduce the risk, we can use invalidation point at 0.8880 level as stop loss.
Support and resistance
(S3) 0.8792 (S2) 0.8837 (S1) 0.8868 (PP) 0.8913 (R1) 0.8944 (R2) 0.8989 (R3) 0.9020
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 0.8950 with stop loss at 0.8880 and take profit at 0.9316 are recommended.
USD/CAD analysis for December 18, 2013
2013-12-18
USD/CAD Elliott Wave
Since our analyses, the USD/CAD pair has been trading upwards. As we expected, impulsive wave i (coloured black) of the bigger wave (5) (coloured blue) has been developing. Yesterday, during the Asian session, we could observe a descending movement from 1.0595 towards 1.0575 level. Therefore, during the European and New York sessions, this commodity pair did not manage to hold this level and the price has retraced towards 1.0617 level. At the moment, the USD/CAD pair is trading around 1.0610 level and we are expecting to see one more upwards movement in the next few days. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0672 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0570 level as stop loss.
Support and Resistance
(S3) 1.0540, (S2) 1.0557, (S1) 1.0582, (PP) 1.0599, (R1) 1.0624, (R2) 1.0641, (R3) 1.0666.
Trading forecast
Proceeding from the Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 1.0580 with stop loss at 1.0570 and take profit at 1.0672 are recommended.
GbpChf Takes Out 1.44. Flat For Now
2013-12-18
Technical Outlook and Chart Setups:
This pair is a "clear sell" on rallies setup as seen on the daily chart view here. We have been expecting a counter-trend rally which has unfortunately not materialized till now; furthermore, the prices have almost taken out support at 1.4350/1.44 levels. It is recommended to remain flat for now and turn trade strategy to sell on rallies from here on. Immediate support is at 1.4350, followed by 1.42 and 1.4; while resistances level starts from 1.4570/80 levels, followed by 1.47 and 1.49 respectively. The overall setup is indicative of the resumption of downtrend after prices turned back from 1.49 levels earlier. A counter-trend rally towards 1.47 levels would be ideal to build short entries.
Trade Recommendations:
Flat for now. Looking to sell higher.
Good Luck !
EurJpy May Be Unfolding Into Head and Shoulder Reversal. Hold Short Positions
2013-12-18
Technical Outlook and Chart Setups:
The single currency pair may be finally unfolding a reversal pattern (Head and Shoulder); but prices should remain below 142.80/90 swing highs for confirmation. It is therefore recommended to hold on short positions taken at 142.20 levels earlier; the risk goes to 143.20. As depicted here, the resistance is fixed at 142.80/90 levels (the recent swing highs); while support begins from just below 141.00 levels, followed by 138.50, 137.00, 134.00 and lower respectively. The overall structure reveals that a major resistance (Fibonacci extension) has been met at 142.80 levels recently and a meaningful pullback should be expected (weekly setup). Furthermore, a possible Head and Shoulder reversal is being setup and pushed below 141.00 levels and now should accelerate its fall.
Trade Recommendations:
Hold on to short positions from 142.20 levels, stop at 143.20, target open.
Good Luck !
EUR/USD: The EUR/USD remains a bull market is spite of the current equilibrium phase in the price. The indicators on the chart support the existence of the bulls’ domination, and it is very much likely that the resistance line of 1.3800 would be tested again and again until it is eventually overcome.
USD/CHF: This currency trading instrument remains a bear market in spite of the current equilibrium phase in the price. The indicators on the chart support the existence of the bears’ domination, and it is very much likely that the support level of 0.8850 would be tested again and again until it is eventually overcome.
GBP/USD: This pair has continued its weakness; and the upward bounce that is currently happening could mean another opportunity to buy a rally in the context of a downtrend. Indeed, the GBP has been a weak currency and the sell signal here would continue to be valid for as long as the price remains below the EMA 56 and the RSI period 14. The current rally could be rejected at the accumulation territory of 1.6300 and the price could fall down further from there.
USD/JPY: The USD/JPY has moved largely sideways since Monday. Being above the demand level of 102.50 (and of course, above the EMA 11), the price could rise upwards when a directional movement begins in the market.
EUR/JPY: This cross is in a clear uptrend despite the fact that the price has been moving largely sideways since Monday. It would not be a surprise when the price ends up closing above the supply zone of 142.00 before the end of this week.
AUD/USD analysis for December 18, 2013
2013-12-18
AUD/USD Elliott Wave
For the last few days, the AUD/USD pair has been trading downwards, impulsive wave 5 (coloured blue) of the bigger wave 1 (coloured green) has been developing. Yesterday, during the Asian and European session we could observe descending 0.8957 towards the 0.8881 level and we can consider this as the end of the 1 wave (coloured green). Therefore, during the New York session, this commodity pair did not manage to hold this level and the price has retraced back to 0.8927 level. At the moment, the USD/CAD pair is trading around 0.8927 level and we are expecting to see more upward movements in the next few days. In accordance with our wave rules and taking into account that wave 2 should retrace 50% of wave 1 we can define the potential targets with measuring wave 1 with take profit at 0.9316 (50% of wave 1). To reduce the risk, we can use invalidation point at 0.8880 level as stop loss.
Support and resistance
(S3) 0.8792 (S2) 0.8837 (S1) 0.8868 (PP) 0.8913 (R1) 0.8944 (R2) 0.8989 (R3) 0.9020
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 0.8950 with stop loss at 0.8880 and take profit at 0.9316 are recommended.
USD/CAD analysis for December 18, 2013
2013-12-18
USD/CAD Elliott Wave
Since our analyses, the USD/CAD pair has been trading upwards. As we expected, impulsive wave i (coloured black) of the bigger wave (5) (coloured blue) has been developing. Yesterday, during the Asian session, we could observe a descending movement from 1.0595 towards 1.0575 level. Therefore, during the European and New York sessions, this commodity pair did not manage to hold this level and the price has retraced towards 1.0617 level. At the moment, the USD/CAD pair is trading around 1.0610 level and we are expecting to see one more upwards movement in the next few days. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0672 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0570 level as stop loss.
Support and Resistance
(S3) 1.0540, (S2) 1.0557, (S1) 1.0582, (PP) 1.0599, (R1) 1.0624, (R2) 1.0641, (R3) 1.0666.
Trading forecast
Proceeding from the Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 1.0580 with stop loss at 1.0570 and take profit at 1.0672 are recommended.
GbpChf Takes Out 1.44. Flat For Now
2013-12-18
Technical Outlook and Chart Setups:
This pair is a "clear sell" on rallies setup as seen on the daily chart view here. We have been expecting a counter-trend rally which has unfortunately not materialized till now; furthermore, the prices have almost taken out support at 1.4350/1.44 levels. It is recommended to remain flat for now and turn trade strategy to sell on rallies from here on. Immediate support is at 1.4350, followed by 1.42 and 1.4; while resistances level starts from 1.4570/80 levels, followed by 1.47 and 1.49 respectively. The overall setup is indicative of the resumption of downtrend after prices turned back from 1.49 levels earlier. A counter-trend rally towards 1.47 levels would be ideal to build short entries.
Trade Recommendations:
Flat for now. Looking to sell higher.
Good Luck !
EurJpy May Be Unfolding Into Head and Shoulder Reversal. Hold Short Positions
2013-12-18
Technical Outlook and Chart Setups:
The single currency pair may be finally unfolding a reversal pattern (Head and Shoulder); but prices should remain below 142.80/90 swing highs for confirmation. It is therefore recommended to hold on short positions taken at 142.20 levels earlier; the risk goes to 143.20. As depicted here, the resistance is fixed at 142.80/90 levels (the recent swing highs); while support begins from just below 141.00 levels, followed by 138.50, 137.00, 134.00 and lower respectively. The overall structure reveals that a major resistance (Fibonacci extension) has been met at 142.80 levels recently and a meaningful pullback should be expected (weekly setup). Furthermore, a possible Head and Shoulder reversal is being setup and pushed below 141.00 levels and now should accelerate its fall.
Trade Recommendations:
Hold on to short positions from 142.20 levels, stop at 143.20, target open.
Good Luck !
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