Currency Analyst since 2010

FX BAZOOKA: technicals (Dec. 20) Part 1


EUR/USD keeps drifting down. Euro has slid to support at $1.3525. Euro may slide to consolidation area of $1.3620/3520. Data released in Germany was mixed (see the economic calendar). 

  • 55-period MA is starting to slope down.
  • The prices dropped below the Ichimoku Cloud ($1.3666) – a bearish sign. Tenkan-sen (red line) went almost vertically down.
  • MACD extended down in the negative territory. RSI, however, is currently signaling oversold (below the 30 level).

Support: $1.3625, $1.3613, $1.3600 and $1.3575 (200-period MA)

Resistance: $1.3666, $1.3705, $1.3740/50, $1.3790

Chart. H4 EUR/USD

Upcoming events:

EUR - All Day - EU Economic Summit

EUR - 10:00 GMT - Italian retail sales

USD - 13:30 GMT - Final GDP

USD - Tentative - Fed Chairman Nomination Vote


Cable remains in a narrow $1.6335 /1.63875 range for a second day in a row. There are now clear signals on the pair for now. However, we still remain bullish for the pair with a medium-term target of $1.6600 as long as it holds above $1.6320.

·         The cable consolidates above the bearish channel;

 H4 MACD histogram remains in a positive territory, but stopped its rise;

  • Cable is supported by the 100- and 55- period MAs;
  • Ichimoku: Kidjun-sen is about to cross Tenkan-sen to the downside (that could become a bearish signal).

Support: $1.6340, $1.6320, $1.6300, $1.6230 (38.2% Fibo)

Resistance: $1.6435, $1.6465, $1.6500

Chart. H4 GBP/USD

Upcoming events:

GBP - 9:30 GMT - Final Q3 GDP, Current Account, Public Sector Net Borrowing

USD - 13:30 GMT - Final GDP q/q

USD - Tentative - Fed Chairman Nomination Vote


USD/JPY extended the upside on Friday, hitting a fresh 5-year high of 104.60. Our next target for the pair lies at 105.55.

  • USD/JPY holds above the bullish H4 Ichimoku with Kijun-sen crossing the Tenkan-sen to the upside;
  • Supported by the 55-day MA (102.85) and the 100-period MA (102.50);
  • MACD keeps on rising (bullish sign);
  • Sentiment remains clearly bullish as long as the 103.75 support holds.

Support: 104.00, 103.75, 103.40, 102.50

 Resistance: 105.00, 105.55


Chart. H4 USD/JPY

Upcoming events:

USD - 13:30 GMT - Final GDP q/q

USD - Tentative - Fed Chairman Nomination Vote

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