Top Forex Brokers:Technical analysis for 23 – 27.12
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IMPORTANT ECONOMIC EVENTS DURING THE WEEK:
EURUSD:
On D1 chart we notice that after reaching the area of the previous top (purple) around 1.3820, the price has returned for a test to the 45-days bullish trend (blue). Despite of the break the price did, it could not be said that the blue bullish trend is broken yet, although the break is a little bit bigger than the previous ones. We have one signal which supports the bearish thesis: We notice that the Momentum Indicator has done a little bearish cross of the 100-level line. At the same time, we also have one other signal, which supports the bullis thesis: On H4 chart we notce that SMA150 has supported the price, where the price has bounced and has returned in the frames of the blue bullish trend. We would like to say again that despite we are discussing this break, that does not mean that the level is broken. It means that the Forex Market is volatile and such deviations are pretty frequent. The good move here is to wait for the price to take a direction and then to enter.
USDJPY:
On D1 chart we notice that the price is still following the white 2-months bullish trend and last week the price reached a new high, which is 62-and-a-half-months high. Since the price has shaped a top and has started a bearish movement, we would probably first see an interaction with the white trend before any bullish activity. If you feel experienced and confident enough, you could try trading the rest of the correction, which might end at the interaction point of the white bullish trend and the red line, which indicates the previous top. That could be so, because such scenario will satisfy both of the levels. If right, the correction and the new bullish force would probably happen until the end of the trading week.
GBPUSD:
On D1 graphe we notice that the price has already tested the white bullish trend line and then it has bounced in bullish direction. Since the price has not reached any significant level, or created some crucial top, we would probably witness a bullish movement until the end of the week. The other scenario is to see another test of the white bullish trend line and then a bullish move again. Furthermore, on D1, H4 and H1, the Momentum Indicator shows clear intentions to break the 100-level line.
USDCHF:
The completed Double Top Fromation has brought the price back to the white bearish trend. The test point of the trend line maches with 38.2% Retracement of Fibonacci, which is another bearish signal. Furthermore, on H4 and H1 we noticed a Rising Wedge Formation, which was the third signal to go short, and we hope you did it. After these signals, the price bounced and started a new bearish movement. Since the previonus bearish move made the price break the old low, we might now see this scenario repeat. On the other hand, we have the Momentum Indicator, which has just crossed the 100-level line in bullish direction, so we should not lose sight of it.
AUDUSD:
On D1 chart we notice our completed Head and Shoulders Formation and the bearish corridor, where the price is still located in. Although the Head and Shoulders Formation is fully completed, the price is still located in the bearish corridor. Now the price is in a correction phase and it is moving toward the upper level of the bearish corridor. If you feel confident and experienced enough, you could try trading the rest of the correction. Otherwise, the good move here is to wait for the interaction of the price with the upper level of the corridor. That would probably happen in the next day or two. An eventual bounce would be a great premise to go short again.
Source From: Forex-Metal Forex Broker