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Market Caution. Euro Bulls persist. GBPUSD. USDJPY

Dec 10 2019, 10:09 PM (+06) |


Today the Euro is trading higher against the USD following the release of very upbeat German and Eurozone ZEW Economic Sentiment. Both reading returned from negative figures, German ZEW increased to 10.7 and Eurozone ZEW jumped to 11.2.

EUR/USD on a Daily TF trading bullish. The body of the candle is using top of Bullish Ichimoku Cloud as resistance and 38.2% Fibo as well as the base line of Ichimoku as support. The pair is currently trading around 1.10756.

Markets will be closely monitoring Fed Chair Powell’s statement tomorrow following the interest rate decision. If the statement is optimistic, this would be positive for the USD as long as President Donald Trump does not simultaneously announce that the increase in tariffs on December 15th stands firm.

Resistance:  R1 1.11, R2 1.11285, R3 1.11647

Support: S1 50% Fibo 1.10293, S2 1.10 – 1.09939 61.8% Fibo, S3 1.09673

GBP/USD on a Daily TF remains bullish. The pair is attempting to break the 50% Fibo level up, currently trading around 1.31755. Conservative Johnson is still ahead in opinion polls 2 days before the general election.

Resistance: R1 1.33128, R2 61.8% Fibo 1.34529, R3 1.36179.

Support: S1 38.2% Fibo 1.28821, S2 1.27685, S3 23.6% Fibo 1.25290.

USD/JPY on a Daily TF is much unchanged from yesterday. Yesterday the price used the 50% Fibo level as support. Today, the pair is using 200 and 9 EMA, which are intertwined as resistance. The pair will be sensitive to the trade war tariff announcement as well as the FOMC statement. A tougher stance on China would likely bring the pair lower.

Resistance: R1 108.770 (200EMA), R2 61.8% Fibo 109.362, R3 109.731 (December high).

Support: S1 107.886, S2 38.2% Fibo 107.484, S3 107.044.

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