EUR/USD, AUD/USD, GBP/USD and USD/JPY Daily Outlook – December 22, 2017

By:

Published: Dec 22, 2017, 07:49 UTC

EUR/USD The pair pulled back slightly during the trading session on Thursday reaching the 118.50 level. The 118 level underneath is believed to be an

EUR/USD

The pair pulled back slightly during the trading session on Thursday reaching the 118.50 level. The 118 level underneath is believed to be an important support zone for the pair as this area in the past has been very resistive. On the weekly chart, it has formed a bullish flag and in the long-term horizon, it could reach 1.32 level. A break above 1.20 level will be significant for the market and even though the United States has passed significant tax reform, the pair should continue to go higher due to more of a risk on attitude in the market. …Read More

GBP/USD

The British Pound traded choppy during the Thursday’s session as it reached down towards the 1.333 level for support. On the hourly chart, it has formed a hammer like a pattern, indicating of a bounce from here which will send the pair towards the 1.34 handle. A clearance above this level will send the market towards 1.35 level and 1.3650 level eventually. The market will continue to attract buyers which will support the positive momentum and if the pair breaks below the 1.33 handle, then the market should go towards the 1.31 handle. …Read More

AUD/USD

The AUD initially went sideways during the Thursday’s session but then shot higher as the US GDP numbers came well below estimates. This resulted in the US dollar to fall that supported the AUD to go marginally higher. Looking ahead, the market will trade volatile due to low trading volume due to the holiday season. It is believed that the market will find enough support at the 0.7625 level and a break below could lead to market reaching 0.75 level underneath. …Read More

USD/JPY

The pair initially went higher during the Thursday’s session but then found enough resistance to fall back. Going forward, the pair is going to find bullish pressure as due to the favourable interest rate differential. A break above 115 handle will send this pair in a buy and hold scenario. With Bank of Japan looks unlikely to raise interest rate amid fear of a slowdown in growth, the long-term aspect of this market is very bullish. perhaps reaching the 1.20 level. …Read More

About the Author

Colin Firstauthor

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.