FX review for 22nd December

Is Gold forming a bullish flag?
December 22, 2015
Merry Christmas and Happy Holidays to all
December 25, 2015

forex

EURUSD 

I’m bearish at current levels as price has reached important daily resistance by the Ichimoku cloud and there are increased chances of a pull back towards 1.08. Important daily support is at 1.0785. A break below that level will open the way for a move towards the December lows.

eurusd2

EURUSD has short-term resistance the 1.0980 level and next at 1.1060. Breaking above these levels will open the way for a bigger bounce towards 1.12-1.13.

USDJPY

Huge support is found at 120.70. Price is trading inside a triangle pattern and is testing the daily Ichimoku cloud support. There are a lot of chances of seeing a big bounce from current levels but traders should not forget to use stops as a break below support will open the way for a push towards August lows.

USDJPY

GBPUSD

Price remains inside a long-term downward sloping wedge and with price very close to the lower boundary, combined with oversold oscillators, I would be looking closely to enter long positions.

GBPUSD1

With short-term support at 1.4870, a break below that level will push price towards 1.4840 but I believe the downside is limited now and we should focus on long position trades. Short-term resistance at 1.4920 will be an initial reversal signal.

AUDUSD 

Last Friday I mentioned in my analysis that I would be bullish around 0.71 expecting a bounce towards the cloud resistance and possibly higher. However with the stochastic oscillator overbought and price hitting the red trend line resistance, I will give the short side a chance as we could very well get rejected at the Ichimoku cloud.

AUDUSD

I would normally expect the reversal to get confirmed if we break below 0.72 with target 0.71. In general I expect some Dollar strength across the board.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.