Today’s latest techincal update, 15 December Europe Forex Market Analysis, covers the Euro which is consistently ranked amongst the top five most-traded currencies.
15 December, HotForex –The EUR perked up after the Eurozone posted a a trade surplus of EUR 19.0 bln in October, with EURAUD up by 51 pips and EURJPY at 132.44 high after 132.04 bottom in the morning. Mostly weaker stock markets in the Asia-Pacific region today, and a mixed-to-lower tone across European bourses so far, along with a solid reading from the latest quarterly Tankan survey of business confidence in Japan, which showed the best quarter for Japanese manufacturers since 2006, are factors that have been conducive for yen strength.
While Aussie, on the other hand, has been the gainer of the week, since it has rallied for 4 consecutive days, especially after the strong November Employment report out of Australia.
15 December Europe Forex Market Analysis
In the Bigger picture, both EUR crosses continue being weak despite the intra-day positive momentum seen after the data. The EURJPY in long-term suggested further weakness, since it is traded below 20 and 50-Day MA, after the strong bearish closing yesterday around month’s lows at 132.36. The Stochastics are moving lower at 33, while MACD and RSI are neutral.
In London open, the pair gained some ground against overnight’s losses by breaking the 20-period MA in the hourly chart. However, only a break and a hold above the short-term resistance at recent swing high, at 132.54, could suggest buying opportunity and a possible retest of 50 and 200-period EMA at 132.80 – 133.10 area. Otherwise a failure of the pair to break this area, but most precisely a break below the 132.15, would coincide with the bigger picture of the pair and will trigger another short position with the target at 131.50.
The EURAUD, presents a similar behavior with EURJPY, due to Aussie’s strength. Pair’s Bollinger Bands are extending their pattern, while the pair is moving near a key support area, marked at 1.5330, which encompasses the 61.8 Fibonacci level and the 50-DAY MA. Therefore, this is a critical level, since 61.8 Fibonacci level consider being a retracement level for assets. A break below the 61.8 Fibonacci level seen since November, could suggest a selling opportunity in the long-term and a possible retest of the S2 level based on pivot point analysis at 1.5232.
Meanwhile, a hold above 61.8 Fib level and a Break of the 1.5410, which is a confluence of 50.0 Fibonacci level and the current Pivot Point level, suggests an upwards momentum, with resistance at 1.5470.
The weak performance in Europe, however, followed broad losses in Asia overnight, with concerns about the U.S. tax bill underpinning the drying up of demand ahead of the holiday period.
This article about 15 December Europe Forex Market Analysis was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
All information provided gathered from reputable sources. Any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.