The Analytical Overview of the Main Currency Pairs on 2020.12.11

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2082
  • Prev Close: 1.2141
  • % chg. over the last day: +0.49%

EUR/USD was trading under slight pressure since the beginning of the European session amid negative news from the Brexit talks. The ECB meeting was actually ignored by the market. Probably, the banking system already has such a high level of liquidity that the extra €500 billion makes no matter for the foreign exchange market. Technically, the pair remained consolidated near historic highs with no hint of a correction.

Trading recommendations
  • Support levels: 1.2059, 1.1924
  • Resistance levels: 1.2175, 1.2167

The main scenario: selling on growth, since buying at the highs of the year is not that kind of a good decision, and without a breakdown of the upper border there is no signal to continue the trend. The local descending channel had been broken, the price was fixed above the two moving averages SMA 100 and SMA 50. This indicates the predominance of bulls. But the MACD, after the formation of an extremum near 2.2167, demonstrates a divergence, which indicates a price reversal. The most likely movement is a slow decline towards the area of ​​the first support at the level of 1.2059.

Alternative scenario: if the price fixes above the level of 1.2175 on the H1 timeframe, the currency pair is likely to return to growth to 1.2270.

EUR/USD
News feed for 2020.12.11:
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The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3403
  • Prev Close: 1.3293
  • % chg. over the last day: -0.83%

Sterling resumed its southwards direction amid the lack of progress in Brexit negotiations. In our opinion, the British currency is the weakest out of all major currencies. This is indicated by the position on the credit market and technical indicators.

Trading recommendations
  • Support levels: 1.3225, 1.3196
  • Resistance levels: 1.3407, 1,3477

The main scenario: selling on growth. The currency pair has fixed below the moving averages. Stochastic hasn’t yet entered the oversold area on the H1 timeframe, and the pound may continue to fall without a rollback during the European session. The MACD confirms strong southern sentiment, including a high probability of the breakout to 1.3196 with price consolidation below.

Alternative scenario: if the price fixes above 1.3348, you can consider buying the currency pair.

GBP/USD
News feed for 2020.12.11:
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The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 104.24
  • Prev Close: 104.26
  • % chg. over the last day: +0.02%

On Thursday, the pair got a strong rebound near its main resistance at the level of 104.75. The daily candlestick closed with a long shadow at the top and with the beginning of European trading, it managed to reach and rebound from the lower border. This indicates the continuation of trading in a sideways range. It looks like the instrument is seriously stuck at the current levels and the exit from the 104.70 - 103.80 area may not be soon.

Trading recommendations
  • Support levels: 103.83, 103.93
  • Resistance levels: 104.74

The main trading scenario: trading in a sideways range between the levels of 104.74 and 103.83. Since the currency pair is near the lower border, you can try to buy with the target of 104.50 - 104.74. The uptrend movement expectations will be strengthened by a breakdown of two moving averages at price levels 104.19 - 104.26.

An alternative scenario assumes a breakdown of 103.83 and a fall to 103.19.

USD/JPY
News feed for 2020.12.11:
  • There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2816
  • Prev Close: 1.2738
  • % chg. over the last day: -0.61%

On Thursday, the pair was able to break through the lower support level and may head towards the April 2018 lows to the 1.2528 zone in the medium term. On the one hand, oil quotes don’t deviate from the northern trend, the probability of achieving the above goal increases. On the other hand, the dollar could gain strength amid futile Brexit negotiations, making it harder to fall.

Trading recommendations
  • Support levels: 1.2707, 1.2528
  • Resistance levels: 1.2835, 1.2886, 1.3026

With the breakdown of the lower border, the pair purchases became risky again. The absence of a breakdown of the moving averages SMA 50 and SMA 100 indicates the dominance of bears. But the MACD demonstrates divergence, which gives a signal for an early correction. In this context, selling can be considered before the price fixes above the moving averages in the area of 1.2787 and the breakdown of the upper border of the consolidation zone at 1.2835.

Alternative scenario: if the price manages to return above 1.2835, the southern trend will be broken at a short date and a buy signal to the level of 1.2886 will appear.

USD/CAD
News feed for 2020.12.11:
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by Justforex, 2020.12.11

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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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