Forex technical analysis for December 26th 2018
EURUSD Analysis: On a weekly chart, the EURUSD’s long-term trend is on the downside. Since early 2008, this long-term trend has been on the downside channel. This decline rally continues after 10 years. The EURUSD rate has climbed in the last wave of upswing from channel floor at $ 1.2340 to channel ceiling (peak in 2018 at $ 1.2555). However, the bullish rally has been adjusted to 61.8% Fibonacci retracement. Recently, the price movements of the currency pair have been limited to Fibonacci levels (50-61.8). Last week, the Rand rate was $ 1,300 in support and as a result we saw EURUSD moving to a resistance of $ 1,475.
Since the parity rate in response to the Fibonacci retracement range of 50% is weakening, if the currency pair is exposed to selling pressures and the market goes below the Rand rate of $ 1,300, we can expect EURUSD to move to support range of 1 1215-1. 1118. In the event of a daily breakdown signal at a Rand rate of $ 1,1300, you might think of a sales deal that would be the first margin of support. The transaction loss limit will also be determined based on the daily signal.
Conversely, if the Round rate of $ 1,300 is backed up by the support and the daily buyback signal is issued, a transaction can be entered into which the first profit margin will again be in the 50% Fibonacci range. If the US dollar exchange rate could pass through the first minor resistance at $ 1,1475, the EURUSD will climb to the next resistance at 1625-1.1800 and eventually reach the channel’s limit.
GBPUSD analysis: On a weekly chart, the long-term trend of the GBPUSD is downside. This long-term trend has begun since the peak in 2007, and continues after 11 years. The market has entered a reformed phase after the record low ($ 1.1516) in recent years and has risen to 50% Fibonacci level. But GBPUSD has been weakened after touching the 50% retracement at neutral floor of the neutral phase ($ 1.4350) to $ 1. 2590 support. Recently, the pound is pegged to USD one and a half years ago, but failed to defeat it.
If the Round rate of $ 1,700 is resumed in the form of resistance and the sales signal is issued on a daily chart, then the deal could be considered, but since the pair has the support of $ 1,290 and $ 1,265, That is why there is a possibility of limiting downward movements. For the GBPUSD decline to rebound, the $ 1,2590 and $ 1,265 defenses must definitely be broken. On the trading side, you have to wait for the floor to roll up and the market returns above the Rand rate of $ 1,700.