The Analytical Overview of the Main Currency Pairs on 2020.12.08

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2125
  • Prev Close: 1.2109
  • % chg. over the last day: -0.13%

On Monday, the EUR/USD price failed to bounce above the SMA 50 and SMA 100 averages. Having closed the day lower on the H1 timeframe, it is indicated that bears are still prevailing, and the southern pattern remains a priority on Tuesday. The MACD indicator is in the negative zone. Stochastic indicates short-term oversold, which states a pullback or consolidation around 1.2110.

Trading recommendations
  • Support levels: 1.2040, 1.1924
  • Resistance levels: 1.2175, 1.2167

The main scenario for trading EUR/USD is selling on growth. There is now a pullback after the first southern impulse. Fundamental and technical background continues to point more towards the south. Targets – 1.2040 intraday and 1.1924 mid-term.

Alternative scenario: if the price fixes above the level of 1.2135 on the H1 timeframe, the currency pair is likely to return to the growth to 1.2175.

News feed for 2020.12.08:
  • – ZEW Economic Sentiment Index in Germany at 12:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3426
  • Prev Close: 1.3383
  • % chg. over the last day: -0.32%

On Monday, sterling recovered most of its losses amid officials’ statements that a deal is still possible. The asset has left a long shadow at the bottom, which is a little confusing. But the day closed confidently below SMA 100 and SMA 50. On the pullback from the bearish momentum, Stochastic reacted by quickly hitting the overbought area. The MACD was unable to return to the positive zone, all technical indicators demonstrate the dominance of bears.

Trading recommendations
  • Support levels: 1.3196
  • Resistance levels: 1.3404, 1.3439

The main scenario: selling on growth. The southern impulse has weakened but remained dominant in the sterling. Buyings remain the most dangerous until the price fixes above 1.3400.

Alternative scenario: if the price consolidates above 1.3400, you can consider buying the asset.

News feed for 2020.12.08:
  • There is no newsfeed for today.
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The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 104.17
  • Prev Close: 104.05
  • % chg. over the last day: -0.12%

On Monday, the pair failed to hold on to its regained positions, and the price closed just below its opening. Market concerns took a piece of the action, and defensive assets were in demand. However, this didn’t affect USD/JPY that much. Price changes are minimal. Stochastic moves quickly from oversold to overbought levels and back. The MACD is neutral. Everything points to continuing trading in a narrow range.

Trading recommendations
  • Support levels: 103.83, 103.68
  • Resistance levels: 104.74

The main trading scenario for the pair – trading in a sideways range. Due to the rapid change in the market sentiment to negative, a decrease to the support level 103.68 in the first place and another rebound to the current levels is possible.

An alternative scenario assumes consolidation above the level of 104.20 and the resumption of growth to 104.74.

News feed for 2020.12.08:
  • There is no newsfeed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2781
  • Prev Close: 1.2797
  • % chg. over the last day: -0.13%

On Monday, the asset showed low volatility. The pair failed to fix above the moving averages. The MACD remains in the negative zone. Stochastic is neutral. The bullish sentiment is still weak and you should probably be careful with purchases, although the pair seems to be significantly oversold.

Trading recommendations
  • Support levels: 1.2770
  • Resistance levels: 1.2835, 1.2886, 1.3026

The main scenario: we recommend considering buying an asset as part of the correction after it fixes above the average SMA 50 and SMA 100 on the H1 timeframe, or from the support level 1.2770 with a short stop-loss.

Alternative scenario: if the price can break through the support of 1.2770, it’s likely to continue falling to 1.2527.

News feed for 2020.12.08:
  • There is no newsfeed for today.

by Justforex, 2020.12.08

We recommend you to get acquainted with the daily overview of the news feed.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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