Sample Category Title

On Monday, the USD/CAD eventually passed the previous December high level and shortly reached above the 1.2960 level. However, afterwards, the pair retraced back to the 1.2920 mark. It could be clearly observed on Tuesday that the pair is being impacted by the 1.2920, 1.2940 and 1.2960 round exchange rate levels.

If the pair resumes its surge, it would most likely aim at the weekly R1 simple pivot point at 1.2991. Although, if round rates continue to impact the pair, the 1.2980 mark might act as resistance.

On the other hand, a decline of the pair might find support not only in 1.2920, but also the 1.2900 mark. In addition, the 1.2900 was expected to soon be strengthened by the 50-hour simple moving average.

On Monday the recovery of the GBP/JPY reached the 150.40 level, which appeared to serve as resistance. On Tuesday morning, the pair was making a second attempt at passing the resistance level. In addition, the 150.40 mark was reached by the 50-hour simple moving average.

In the case of a surge above the 150.40 level, the rate could find resistance at the 150.50 mark. Note that the 150.50 mark's resistance is being strengthened by the 200-hour simple moving average. Above these levels, the next resistance was the weekly simple pivot point at 151.00.

On the other hand, a decline of the GBP against the Japanese Yen might look for support in the Monday's low level at 149.54. A further continuation of the decline of the pair might find support in the weekly S1 simple pivot point at 149.36. However, take into account the 2021 low level zone at 148.50/149.35.

Starting from mid-Monday up to the start of Tuesday's European trading hours, the AUD/USD pair has been trading almost flat between the 0.7100 and 0.7120 levels. However, on Tuesday morning, the pair was approached by the resistance of the 50-hour simple moving average.

If the 50-hour simple moving average provides enough resistance for a decline, the rate would most likely look for support in the 0.7100 level. Further below, note the early Monday low level zone at 0.7080/0.7085 and the weekly S1 simple pivot point at 0.7070.

Meanwhile, a surge above the 50-hour SMA is most likely going to reach for the combined resistance of the 200-hour SMA and the weekly simple pivot point at 0.7142/0.7147. Above the two technical levels, there is no resistance as high as the 0.7200 mark and the weekly R1 simple pivot point at 0.7204.

The EUR/JPY currency exchange rate managed to pass the 128.00 mark at mid-day on Monday. On Tuesday, the pair broke the resistance of the 50 and 200-hour simple moving averages at 128.20 and 128.30. Next target for the pair's surge was the weekly simple pivot point at 128.41 and the 128.45 mark, which has been shown capable of acting as both support and resistance.

If the pair passes the resistance of the pivot point and the 128.45 level, the EUR/JPY would have no resistance as high as the 129.00 level. The 129.00 level and the weekly R1 at 129.05 and the December 8 high level at 129.10 are all expected to act as resistance.

On the other hand, a decline of the rate might look for support in the 200-hour SMA at 128.30 and the 50-hour SMA at 128.10, before reaching the 128.00 mark.

Germany Gfk consumer confidence for January dropped sharply from -1.8 to -6.8. In December, economic expectations dropped from 31.0 to 17.1, lowest since April. Income expectations dropped from 12.9 to 6.9. Propensity to buy dropped from 9.7 to 0.8.

Rolf Bürkl, GfK consumer expert said: "Consumer sentiment continues to be under a lot of pressure from two sides as the year draws to a close. High case numbers due to the fourth wave of the Corona pandemic with further restrictions, as well as significantly increased prices, are putting more and more pressure on consumer sentiment.... The outlook for the beginning of next year is also muted against the backdrop of the rapid spread of the Omicron variant."

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EUR/USD

Current level - 1.1274

After the sell-off was limited by the support level at 1.1229, the euro regained some of its recent losses and tested the close resistance at 1.1294. At the time of writing the analysis, the test seems to be unsuccessful, but if the bulls manage to gain enough momentum and successfully breach it, the pair will most likely test the target at 1.1360. If the bears re-enter the market, a new successful attack on the support zone at 1.1229 would further deepen the decline towards the level at 1.1191 and would strengthen the negative expectations for the future path of the EUR/USD.

USD/JPY

Current level - 113.52

Neither the bulls nor the bears managed to prevail and the Ninja continued to trade in the zone between 113.39 and 113.79. A bullish move above the aforementioned zone could easily pave the way for a test of the next target at 114.17. If this test is successful as well, then a rally towards 114.80 is likely to develop. In the negative direction, the first support is still the level at 113.39, followed by the critical zone at 112.58.

GBP/USD

Current level - 1.3208

The support zone at 1.3184 managed to resist the bearish attack from yesterday and the Cable continued to trade above the mentioned level. If the bulls prevail, a corrective move could lead to a test of the first resistance at 1.3282, followed by the upper target at 1.3359. If the bears gain enough momentum and manage to breach the support zone at 1.3184, then the Cable will most likely suffer more losses and head towards levels at around 1.3100.

Daily Pivots: (S1) 149.54; (P) 150.06; (R1) 150.59; More...

Intraday bias in GBP/JPY is turned neutral as it recovered ahead of 148.94 support. On the downside, firm break of 148.94 will resume larger fall from 158.19 to 145.10 medium term fibonacci level next. For now, outlook will stay bearish as long as 152.60 resistance holds, in case of stronger recovery.

In the bigger picture, strong rebound from 148.93 key structural support will retain medium term bullishness. Firm break of 158.19 high will resume whole up trend from 123.94 (2020 low). Nevertheless, firm break of 148.93 will bring deeper correction to 38.2% retracement of 123.94 to 158.19 at 145.10, and possibly further lower, as a correction to up trend from 123.94 at least

Daily Pivots: (S1) 127.67; (P) 127.99; (R1) 128.46; More....

Intraday bias in EUR/JPY is turned neutral as it recovered ahead of 127.36 support. On the downside, firm break of 127.36 will resume fall from 133.44 and larger pattern from 134.11. Next target is 126.58 medium term fibonacci level. For now, outlook will stay bearish as long as 129.62 resistance holds, in case of stronger recovery.

In the bigger picture, as long as 38.2% retracement of 114.42 (2020 low) to 134.11 at 126.58 holds, up trend from 114.42 is still in favor to continue. Break of 134.11 will target long term resistance at 137.49 (2018 high). However, sustained break of 126.58 will raise the chance of medium term bearish reversal. In this case, deeper decline would be seen to 61.8% retracement at 121.94, and possibly below.

Daily Pivots: (S1) 0.8498; (P) 0.8525; (R1) 0.8564; More...

Intraday bias in EUR/GBP stays neutral and outlook is unchanged. On the upside, firm break of 0.8593 resistance will be the first sign of larger bullish reversal and target 0.8656 resistance next. On the downside, however, break of 0.8452 will turn bias back to the downside to retest 0.8379 low instead.

In the bigger picture, price actions from 0.9499 (2020 high) are still seen as developing into a corrective pattern. Deeper fall could be seen as long as 0.8593 resistance holds, towards long term support at 0.8276. We'd look for bottoming signal around there to bring reversal. Meanwhile, firm break of 0.8593 will now be an early sign of medium term bottoming. Further break of 0.8656 will pave the way to 38.2% retracement of 0.9499 to 0.8379 at 0.8807.

Daily Pivots: (S1) 1.5777; (P) 1.5839; (R1) 1.5924; More...

Intraday bias in EUR/AUD remains neutral at this point. On the upside, break of 1.5905 minor resistance will argue that pull back form 1.6168 is complete. Intraday bias will be turned back to the upside for retesting 1.6168 first. Break there will resume rise form 1.5354 to 1.6434 resistance. On the downside, below 1.5655 will target 1.5354 support instead.

In the bigger picture, medium term outlook remains neutral for the moment. Rise from 1.5354 is seen as the third leg of the corrective pattern from 1.5250 low. Further rise cannot be ruled out, but even in that case, strong resistance should be seen at 38.2% retracement of 1.9799 to 1.5250 at 1.6988. Larger down trend from 1.9799 is in favor to extend through 1.5250 at a later stage.