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Technical analysis on GBPUSD, AUDUSD, and USDCHF: 5th December -9th December

GBPUSD technical analysis: 5th December – 9th December

   

Figure: GBPUSD daily chart

The Great Britain pound has suffered an extensive loss in the financial market during the Brexit event. At the event, the pair sharply dropped at the critical support level at 1.13142.From that level, the pair managed to find some strong support and started its bullish correction on the daily chart. Last week the mighty dollar was broadly weaker against its all major rivals in the forex industry. These created a sharp rally in the GBPUSD pair and the pair has breached a critical resistance level at 1.26667.Currently, this resistance level will act as strong support and the current bullish target for the GBPUSD pair would be the first critical resistance level at 1.28609.If the pair manages to breach that level then we will see another sharp rise in the price towards the 50% retracement level. From the critical resistance level at 1.31522 we are expecting strong bearish momentum in the market since a significant amount of resistance lies at that point.

Currently, the GBPUSD pair is in strongly bullish retracement. However, if the pair fails to retain its bullish momentum then the first bearish target for the pair would the critical support level at 1.26806.A clear decisive break of the price below that level will bring strong bearish pressure in the market which will ultimately drive the price towards the next critical support level at 1.23330.This level is going to provide a significant amount of support to the GBPUSD pair. However, a clear break of that level will bring the sellers back in the market. Considering all the technical parameter the over bias is strongly bullish for the GBPUSD pair in the next week. However, traders are in fear to enter long into GBPUSD pair the FED is most likely to hike their interest rate in the month of December during their FOMC meeting minutes. So if you enter long to make sure that you close your position before the FOMC meeting starts.

AUDUSD technical analysis: 5th December – 9th December

 

Figure: AUDUSD daily chart

The Aussie dollar has sharply fallen on the daily chart after it breached the bullish trend line support zone at 0.75875.The pair eventually found some support near the critical support level at 0.73110.From that level, the pair has again started to build bullish momentum in the pair. However, the price failed to retain its bullish momentum after it hit the minor resistance level at 0.74942.Currently, this level is going to provide a significant amount of selling pressure to AUDUSD pair. If the pair manages to breach the minor resistance level at 0.74942 then we will see a nice bullish move in the AUDUSD pair towards the next critical resistance level at 0.75151.This level is going to provide a significant amount of selling pressure to the AUDUSD pair since lots of candlestick cluster lies there. Moreover, the broken trend line support which has turned into resistance is right above that level.

The next week is extremely important for the AUDSUD pair since lots of important major economic event will take place for the Aussie dollar. The RBA is going to readjust their interest rate. So if things go in favor of the Aussie dollar then we will again see a strong bullish rally in the AUDUSD pair in the next week. If the pair manages to hold its bullish momentum in the market the first bearish target for the AUDUSD pair would be the critical support level at 0.73110.A clear decisive break of that level will bring sharp fall in the AUDUSD pair towards the next critical support level at 0.71470.This level is going to provide a significant amount of buying pressure to the AUDUSD pair but a break of that level will bring strong bearish momentum in the market and long-term bearish trend will again rule the market.

USDCHF technical analysis: 5th December – 9th December

 Figure: USDCHF weekly chart

The USDCHF pair has broken critical resistance level at 0.99508 on the weekly chart and currently the price is heading towards the next critical resistance level at 1.03218.These level is going to provide a significant amount of selling pressure to The USDCHF pair. Most of the professional price action trader will be cautiously observing that level for bearish price action confirmation signal in the market. However, a valid break of the price above the critical resistance level at 1.03218 will bring fresh buying pressure in the USDCHF pair and the pair will ultimately lead towards the next critical resistance level at 1.04590.

If the critical resistance level at 1.03218 level manages to restrict the bullish move of the USDCHF pair then we will see the decent drop in the pair towards the first critical support level at 0.99508.This level is going to provide a significant amount of buying pressure to USDCHF pair and professional price action traders will be cautiously waiting for bullish price action confirmation signal to enter long into this pair. If the pair breaches that support level then we will see another sharp fall in the price towards the next critical support level at 0.95389.This level is going to be most sweet for the buyers since the price has respected this level to many times in the past. Considering all the parameters the overall bias is slightly bullish for the USDCHF pair. If the FED hike their interest rate in the month of December then we might see another strong bullish movement in the pair for a prolonged period of time.

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  1. […] GBPUSD technical analysis: 5th December – 9th December Figure: GBPUSD daily chart The Great Britain pound has suffered an extensive loss in the financial market during the Brexit event. At the event, the pair sharply dropped at the critical support level at 1.13142.From that level, the pair managed to find some strong support…  […]

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