General analysis about forex market: 5th December – 9th December

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GBPUSD technical analysis

The Great Britain pound has suffered extensive loss after the Brexit event and the pair is now in a bullish correction. The pair started its bullish correction against the mighty dollar after hitting the critical support level at 1.12925.From that levels, the first bullish correction was towards the critical resistance level at 1.26816.In the last week, the pair managed to breach a critical resistance level at 1.26816 which is also the high of 10th November 2016.Now the first bullish target for the great Britain pound is the critical resistance level at 1.27994.From that level, we might see a bearish move in the pair but the last week gain was significantly strong which has turned the market sentiment into bullish. If the pair manages to break the critical resistance level at 1.27994 we will see a strong bullish rally in the GBPUSD pair towards the next critical resistance level at 1.30584.Professional price action traders are waiting patiently for a decent pullback in the GBPUSD pair to enter fresh long in the market.

Currently, the pair has formed a strong cluster of support below the current price level. The professional trader will be cautiously waiting for bullish price action confirmation signal near the support level at 1.23330.However, if the support level at 1.2330 fails to create strong bullish momentum in the pair then we will see a sharp drop in the price which will ultimately lead the pair towards the key support level at 1.220773.A daily closing of the price below that level will wipe away the buyers from the market and it creates a new low in the market. Considering all the parameters the overall sentiment remains bullish for the GBPUSD pair in the upcoming. However, traders should be trading with an extreme level of caution since the FED is most likely to hike their interest rate in the month of December FOMC meeting minutes.

AUDUSD technical analysis

The AUDUSD pair has broken the critical support level at 0.75339 and the pair is currently trying to test the next critical support level at 0.71452 in the daily chart. In the next week the pair most likely to test the support level at 0.71452.From there we might see a decent bounce in the AUDUSD pair but ultimately the sellers are most likely to beat the bulls in the market. However, if the critical support level at 0.71452 holds then the first bullish target for the AUDUSD pair would the next critical resistance level at 0.75339.A clear break of that resistance level will bring strong buying pressure in the market and the pair will lead towards the key resistance level at 078267.This level is going to provide a significant amount of selling pressure to the Aussie dollar and professional price action traders will be cautiously observing that level to enter short in the forex market with bearish price action confirmation signal.

In last Friday the pair exhibited strong bullish momentum in the market and currently the pair is breached the 8 days EMA in the daily chart. The next selling level for this pair would be 21 day EMA level. Professional traders will enter short in the market at 0.74794 since this level is well protected by the 21 day EMA.(dynamic resistance level).Considering all the parameter the over bias for the AUSDUSD pair for the upcoming week remains strongly bearish. However entering short in the current price level will not be justified entry since the price is trading too close to the support level. If the 21 days EMA restricts the bullish move of the AUDUSD pair then the first bearish target for the Aussie dollar will be the critical support level at 0.73693.A clear decisive break of that level will bring strong bearish momentum in the market in favor of the long-term bearish trend.

EURJPY technical analysis

.There has been an extensive bullish move in the EURJPY pairs in the last week. In the weekly chart, there has been a bullish crossover of the 21 days and 8 days EMA. Currently, the price is testing the critical resistance level at 121.654.This level is going to play a significant role in the next movement of the EURJPY pairs since if the critical resistance level manages to restrict the bullish move then we will see a strong drop in the price towards the next support level at 117.30.On the contrary, a valid break of the resistance level will bring another strong bullish rally in the EURJPY pair which will ultimately drive the price towards the next critical resistance level at 127.05.This level is going to provide a significant amount of selling pressure to the EURJPY since the massive cluster of resistance currently resides there.

IF the critical resistance levels at 121.654 manages to restrict the bullish move in the EURJPY pair then we will say the initial bullish correction for the EURJPY pair has come to an end. The first bearish target for the pair would the critical support level at 117.30.a clear decisive break of the price below that level will bring further bearish movement in the EURJPY pair which will ultimately challenge the critical support level at 112.27.The daily RSI is currently in the overbought region which suggests us that the strong bullish power might fade away in the market at any time. Considering all the fact the overall bias for the EURJPY pairs remains bearish for the next week. We will be waiting for bearish price action confirmation signal near the critical resistance level at 121.645 to enter short in the market.