Daily Technical Analysis on 21st December 2016
Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY, & XAUUSD.
Yesterday markets ignored positive Producer Price in Germany after the US dollar strengthening following Yellen's hawkish. The euro sustained its reject on last day. The pair tried a brief upturn in the previous trades, but lost mist little bit over the 1.04 levels as a renewed risk-on wave comes back into the down beat sentiment to the market. The currency pair comes again under the level of 1.04 & advanced towards 1.035 levels before the US session opening. The particular European currency hardened the level in the same session.
The price extensive its decreases below the moving averages which kept heading lower in the 4HR chart. The resistance finds in 1.04 levels, the support comes in 1.035 levels. MACD stayed at the same level which supports the sellers. The RSI indicator was holding close to the oversold areas, favoring a fresh move much lower.
The dollar returned manages over the market among the US policy tapering in 2017. The Asian session recovery lost to crack the 1.2400 levels hurdle on yesterday. After posting a daily high at 1.2407 levels the recovery caught up in the mid-Asian hours. Trading volumes improved during the European session & a fresh selling interest considering on the sterling transferring the currency to latest lows towards 1.23 levels.
The value stayed below the 50, 100 & 200 EMAs in the 4Hr chart. The 50 EMAs intersect the 100 EMAs downside. The 100 & 200 EMAs were neutral although the 50 EMA directed downwards. The resistance lies at 1.24 levels, the support appears at 1.23 levels. The MACD histogram declined which hints the seller’s growing power. RSI indicator was griping close to the oversold region.
The yen weakened among the fresh news from Japan. The BoJ determined to leave the policy unmodified planning to increase its monetary base until inflation go above 2 percent. In addition, according to the controller the Japan's economy sustained its improvement.The pair rallied on last day after the BOJ’s unmodified monetary policy decision. Buyers once again took the market control & sent the rate back towards daily highs. Bulls drive the US dollar from 117 levels to 118 levels in the European hours.
In the 1Hr chart the value bounced off the 100 EMAs before the European session opening. The US dollar smashed the 50-EMAs on its path upwards & stirred away from the moving averages. The 100 & 200 EMAs kept heading advanced although 50 EMAs directed lower in the 1Hr chart. The resistance seems in 118 levels, the support stands in 117 levels. MACD stayed at the same level which confirms the buyers growing strength. RSI went upwards which indicates the buying power.
The yellow metal weakened on yesterday among reinforced prospects over the Fed additional policy tightening & controllers plans to hike the rate 3 more times next year. A new risk-on sentiment assists sellers to return control. The latest minor-recovery was clogged around the 1140 levels. Bears took proposal & forced the pair towards 1130 levels.
The value bounced off the 100 EMAs & smashed the 50 EMA downside directions. The 100 & 200 EMAs directed lower although the 50 EMA stays neutral. The resistance remains at 1140 levels, the support stays at 1130 levels. The MACD histogram reduced which signs sell signal. The RSI indicator was holding close to the oversold zone supports a fresh move lower.