13 December Daily Forex trading tips, with markets focused on the UK CPI data. Analysts expect increased inflation. How will the BoE view any increase? After both Cable and Aussie rallied yesterday. With slightly improved Chinese data overnight, will the markets continue with GBP being bullish?
13 December, AtoZForex – A brief summary look at the day ahead, with insights into the Daily Forex trading tips. On the economic calendar today there is only one (1) remaining high impact data news events. There is no (0) high impact news non-data based events.
13 December Daily Forex Trading Tips
AtoZforex Hint: Do not trade on a single news event, look at the total picture when news releases are at similar times.
# 1 EURUSD – 13 December Daily Forex Trading Tips
Fundamentals – Political uncertainty in the coming 2017 will prevail on the euro zone nations. Elections, Brexit etc.
Economic side – There are no high impact news today from Europe, except UK CPI data, which may impact EUR.
Technicals – On the daily chart, daily 20sma and 100sma are bearish. EUR closed at 1.0651 level yesterday after testing the 1.0520 support level. Currently testing the daily 20sma. For a sustained downside move to happen, price clearly needs to break the 1.0505 support.
Intraday (H1 chart) – Hourly 20sma is up and 100sma is down. MACD is flat and above the neutral level. RSI is down and above the 50 level. The EUR respected and rebounded off the strong 1.0520 support level. The downside EUR outlook remains intact. If this level is clearly breached on the downside, expect price to encounter strong support at 1.0505. On the upside a clear break and close above the 1.0721 level indicate a possible start of a bullish phase. Price is sandwiched between the two sma’s currently.
#2 GBPUSD – 13 December Daily Forex Trading Tips
Fundamentals – Any negative news related to Brexit negotiations will impact GBP, since the primary driver for GBP remains political going into 2017.
Economic side- There is one high impact UK economic data this morning, CPI data. Expected to increase compared to previous data release.
Technicals – Price has been sandwiched between the daily 20sma and 100sma and appears to be in “limbo land”. Even though GBP rallied yesterday, GBPUSD is still trading in a broad range between 1.2790 to 1.1850 levels. The 20sma is up and 100sma is down. MACD is up and above neutral line. RSI is pointing down and above the 50 level. Last week’s outlook remains intact. If the 1.2865 price is breached and remains above this level, price could rebound from the psychological level of 1.3000/1.3100 levels. The next daily resistance is at the 1.3367 level. On the down side, there is a strong daily support of 1.1850. A break below and re-test of the 1.1846 level would support a further bearish move.
Intraday (H1 chart) – The hourly 20sma is up and 100sma is flat, with the 2osma above 100sma. MACD is sloping down and above the neutral level. RSI is pointing down and above the 50 level. After the clear break above the 1.2600 level price tested the 1.2620 level. A break above this did test the 1.2665-70 levels. Price rallied yesterday and bounced off the 1.2700 level. If the CPI data is below expectation, the 1.2620 could be tested. A bclear break below this would test the 1.2575-70 support levels.
#3 USDCAD – 13 December Daily Forex Trading Tips
Fundamentals – Due to correlation between the CAD and oil, if there is any news regarding oil, would impact the CAD.
Economic side- No high impact Canadian economic data releases today.
Technicals – The daily 20sma is down and 100sma is flat. The 20sma is above 100sma. MACD is pointing down and below the neutral level. RSI is pointing down and below the 50 level. Price broke through the 1.3190 level and easily reached the 1.3150 support level. A clear break below this would target the 1.3065-60 level price could see support at the 1.3010-00 support level. Bullish bias only on a clear break of the 1.3585 resistance level.
Intraday (H1 chart) -The hourly 20sma and 100sma are sloping down. With the 20sma below the 100sma. MACD is up and below the neutral line. RSI is flat and at the 50 level. Price broke below the 1.3150-45 level confirming continued bearish movement. The next target remains on the downside is 1.3065-60 support level.
#4 AUDUSD – 13 December Daily Forex Trading Tips
Fundamentals – Nothing currently to focus on.
Economic side– Today there is no high impact news releases from Australia.
Technicals – Daily 20sma is down and 100sma is flat, with 20sma below 100sma. MACD is up and below the neutral level. RSI is sloping up and at the 50 level. No change in view. Price tested the but has not broken above the 0.7505 level. If it does we could see price move above towards the 0.7530 and 0.7550 levels. For further downside movement, a clear break initially below the 0.7440 would test the 0.7380 support level and price consolidating away would support a start of a bearish move.
Intraday (H1 chart) – The hourly 20sma is up and 100sma is up. The 20sma is above the 100sma. MACD is down and above the neutral level. RSI pointing up and just above the 50 level. Price rallied after testing the 0.7440 level, with a re-test of the target of 0.7490 easily reached after breaching the resistance levels at 0.7460. Overnight after the positive Chinese economic data saw AUD spike to 0.7513 level before dropping. Price is below the 0.7490 level and in between the two sma’s. Bias has shifted to neutral.
Think we missed something? Let us know in the comments section below.