Daily Technical Analysis. Monday, December 11
The Euro is attempting an advance during the Asian Session at the beginning of the week after hitting its lowest level in two weeks. This comes in light of the weak start of the US Dollar in a week dominated by Central Bank decisions.
Technical reading shows that the EURUSD pair is trying to absorb the selling pressures it has been exposed to recently. With no clear signals to reverse the overall bearish trend, the pair managed to break through 1.1780 resistance levels which would allow the market to correct higher and possibly test the second resistance level at 1.1800. Breaking the support level at 1.1770 would however cause a bearish movement on prices.
The Pound rose at the start of this week after falling below $1.34 per Dollar on Friday following expectations and Economic Data coming from the UK Economy and the US. Data from UK Industrial Production Index for October showed slower production growth.
Technically, despite the recent declines witnessed by the GBPUSD pair, prices still have to break and stabilize below the support levels at 1.3370. Hitting the 1.3330 levels will confirm the continued decline. A break at the resistance levels close to 1.3415 would affect the recent bearish trend and cause the pair to proceed on a sideways movement.
The USDJPY pair has seen a decline in Monday’s trading as the Dollar weakens against a basket of major currencies.
A rebound in the pair is likely to reinforce the previous bullishness. The pair’s success in breaching near resistance levels at 113.70 will boost optimism and push the price test to 114.00. A return of prices below the 113.40 support level would temporarily alleviate the optimism however.
Gold prices started the week on a weak note staying near the five-month low recorded last week, as the Dollar stabilized ahead of the Federal Reserve Meeting. The US Jobs Report for the month showed a rise in the number of new jobs as unemployment figures are at the lowest level in almost 17 years. However, the wage rates remain weak, and this could possibly affect the outlook for Monetary Policy and Interest Rates next year.
The decline in gold prices has stopped after these data, but the precious metal was losing enough momentum to keep trading near its lowest level in five months.
Technical reading shows that the yellow metal is trying to absorb the recent selling pressures. With no clear signals to change the overall bearish trend, Gold has managed to breach the resistance levels of 1250 which would allow the market to correct toward the upside, and perhaps test the second resistance level at 1258. A break of the support level at 1247 would on the other hand, consolidate the bearish trend.