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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Daily Forex Technical Strategy Fri 20 Dec

Article By: ,  Financial Analyst
December 19, 2019 10:06 PM

GBP/USD – A potential minor rebound is on the cards


click to enlarge chart

  • The pair has staged the expected slide and hit the short-term target/support of 1.3000/2970 as per highlighted in our previous report (click here for a recap).
  • Fractal/Elliot Wave analysis suggests a potential minor rebound to retrace the on-going slide from 13 Dec 2019 high of 1.3515 as the price action of the pair is approaching a Fibonacci retracement/expansion cluster at 1.2945.
  • In addition, the hourly RSI oscillator has traced out a bullish divergence signal at its oversold region. Flip to a bullish bias with 1.2945 as the short-term pivotal support for a potential minor rebound to target the intermediate resistance at 1.3215 max 1.3300 before another downleg materialises.
  • However, an hourly close below 1.2945 invalidates the rebound scenario for a continuation of the slide towards the upper limit of the key medium-term support at 1.2750 (lower boundary of the ascending channel from 03 Sep 2019 low & 50% Fibonacci retracement of the up move from 03 Sep low to 13 Dec 2019 high).

EUR/USD – 1.1200 remains the key resistance to watch


click to enlarge chart

  • No major changes on its price action configuration, as the pair hit the first short-term support at 1.1110 and traded sideways thereafter.
  • 1.1200 remains the pivotal resistance for a potential push down to test the next near-term support at 1.1040 within a range configuration. However, a daily close above 1.1200 sees a bullish breakout for a further push up towards the next intermediate resistance at 1.1285.

USD/JPY – Bulls are still hesitant as liquidity thins ahead of year end



click to enlarge charts

  • No change, 109.70 remains the key short-term pivotal resistance for a potential push down to retest 108.95 and below it sees a further slide towards the minor range support area of 108.30/107.90.
  • However, an hourly close above 109.70 negates the bearish tone for a further squeeze up to test the 110.50 major resistance.

AUD/USD – Neutral stance intact


click to enlarge chart

  • Continued to trade sideways above the pull-back support of the former major descending channel resistance from 03 Dec 2018 high. Remain neutral between 0.6930 and 0.6860. An hourly close above 0.6930 sees a further push up to target the next resistance at 0.7080 (18 Jul 2019 medium-term swing high).
  • On the flipside, a break below 0.6860 invalidates the bullish breakout for a slide back into the range configuration to retest 0.6755/6720 support.

Charts are from eSignal


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