Daily Technical Analysis. Friday, December 08
EURUSD
The Euro declined during the Asian trading Friday for the fifth session in a row as the US Dollar recovered. The Dollar’s performance yesterday was the best performance this week, trading at a two-week high against the major currencies, as the Federal Reserve continued its policy of hiking Interest Rate s before the end of the year.
The US Jobs Report, which is the most important event in today’s session, sees market analysts looking ahead in high anticipation. Technically, the return of selling pressures on the pair’s movement would reinforce the current bearish trend. A break below the near support levels at 1.1760 will consolidate the declines and cause a test on the 1.1720 levels. The return of the price above the resistance level at 1.1800 would temporarily ease the selling pressure.
The US jobs report is the most important event of today’s session.
GBPUSD
GBPUSD sharply advanced yesterday, to reduce losses this week against the Dollar, and is trading near highs amid optimism about the negotiations for Britain’s exit from the European Union.
The EU Commissioner’s latest comments on the progress made in the Brexit negotiations caused market optimism, giving the Pound a boost to recovery. Despite recent gains, the pair still has to break above the 1.3520 and 1.3550 resistance levels to confirm a continued rally. A drop below the near support at 1.3480 would affect the recent uptrend and cause a sideways trend.
USDJPY
The US Dollar rose against the Japanese Yen to its highest level, with expectations of a US Interest Rate hike before the end of the year, and a final draft of the US Tax Law underway.
It is worth mentioning that the remarks made by Japanese Central Bank President Kuroda indicated the bank’s willingness to exit the Stimulus Program while achieving its objectives.
Positive technical reading of the USDJPY pair indicates a clear control of the Bulls on the trades. Price action is expected to continue its rally until the price target of 113.70 is attained.
XAUUSD/GOLD
Gold prices are trying to recover during the Asian Session on Friday, after hitting a five-month low during yesterday’s session, as negative pressure from the Dollar’s recovery and falling demand for the precious metal continued.
The break below the near support levels at 1264 will consolidate the declines and open the door to test the 1260 levels alone. The return of the price above the resistance level at 1267 would ease the temporary selling pressure.
