Technical Checks For EUR/USD, GBP/USD, NZD/USD & USD/CHF: 19.12.2017

EUR/USD

While more than a month-old ascending trend-line, at 1.1740 now, seems restricting the EURUSD’s declines, the pair finds it difficult to surpass three-week long downward slanting TL, near 1.1840. As a result, traders wait for any of these levels’ break before taking a call on the pair. Should the quote clear the 1.1840 resistance, the 1.1875 and the 1.1910 might offer intermediate halts during its north-run towards November high of 1.1960. On the contrary, pair’s downturn beneath 1.1740 might have to struggle with 1.1715-10 horizontal-region in order to target 1.1675 and the 1.1640-35 supports.

GBP/USD

GBPUSD is another major which is stuck in a small range. In this case, a downward slanting TL, at 1.3425, followed by descending channel-resistance figure of 1.3470 are expected nearby resistances to watch while the 1.3300 and the channel-support, around 1.3265, are likely adjacent rests to observe. Given the prices confirm channel-break momentum by successfully trading beyond 1.3470, the 1.3520, the 1.3550 and the 61.8% FE level of 1.3615 might please buyers. However, a downside break of 1.3265 can quickly fetch the pair to 1.3210 and then to the 1.3180-75 numbers. Additionally, during the pair’s extended south-run below 1.3175, the 1.3130, the 1.3080 and the 1.3040 can reappear on the chart.

NZD/USD

NZDUSD’s sustained trading above 0.6980 favors the pair to conquer 0.7030-35 horizontal-area and challenge the 0.7050-55 region to target the 100-day SMA level of 0.7090. If the pair manages to close above 0.7090 on D1 basis, the 0.7145 and the 0.7165 could entertain Bulls afterwards. Meanwhile, a daily closing below 0.6980 could drag the pair to 50-day SMA level of 0.6950 and then to the resistance-turned-support line of 0.6915 whereas the 0.6880 and the 0.6820-15 may curb its additional weakness.

USD/CHF

Following its U-turn from a month-old descending TL, the USDCHF seems declining towards an upward slanting trend-line support of 0.9790, breaking which 100-day SMA level of 0.9765 and the 0.9740-30 zone could entertain the Bears. In case if the pair drops below 0.9730, chances of its subsequent plunge to 0.9700 and then to 0.9660 can’t be denied. Alternatively, a clear break of 0.9920 trend-line resistance can help the pair to target 0.9950 and the 0.9970 north-side numbers but a bit broader descending TL, at 1.0020 now, seems crucial for the optimists then after. Expecting the pair’s successful trading above 1.0020, it can well aim for 1.0100 and the 1.0120 resistances.

Cheers and Safe Trading,
Anil Panchal