November 28, 2020
Analyzing the EUR/USD,GBP/USD and USD/JPY
USDJPY Technical Analysis Daily 24 12 2019

Analyzing the EUR/USD,GBP/USD and USD/JPY

EUR/USD at Short-term Key Level

The EUR/USD failed to maintain the rally above the 200-days simple moving average. As the price reversed lower forming a bearish shooting star reversal candlestick pattern at 1.1180 horizontal resistance area.

EURUSD Technical Analysis daily chart 24/12/2019
EURUSD Technical Analysis daily chart 24/12/2019

Following the bearish candle, the price extended the decline to the 50-days simple moving average and is testing a key horizontal support level. If you look left, you would notice the price swings around that key 1.1075 level.

We could see a short term upside bounce, however we are still trading in a sideways range as long as below 1.1180. Therefore, I wouldn’t consider buying this pair as long as its trading below that resistance.

Alternatively, I would look for a further downside on a break below 1.1075 level. Probably towards the next key support area 1.0980-1.1000. Breaking 1.0980 will probably clear the way towards 1.0880.

EURUSD Technical Analysis 8-hour chart 24/12/2019
EURUSD Technical Analysis 8-hour chart 24/12/2019

Moving to the 8-hour time interval, the price has taken the short term support(shaded in blue). A pullback and retest of that broken support-possible resistance now, is worth watching. As if the bearish scenario to unfold, it is the first area to look for the price to halt.

GBP/USD Breaks Back Below 1.30

GBPUSD Technical Analysis daily chart 24/12/2019
GBPUSD Technical Analysis daily chart 24/12/2019

The British pound has been under strong pressure followed the reversal from 1.3382 horizontal resistance. The price has taken the near term support around 1.3050. This is a negative indication and suggests that more downside likely. Next downside target is around 1.2770 area. Just above the 200-day simple moving average and the rising trend line.

USDJPY Faces Falling Trend Line

USDJPY Technical Analysis daily chart 24/12/2019
USDJPY Technical Analysis daily chart 24/12/2019

USDJPY had been trending slowly higher, as the price completed an inverse head and shoulders pattern. However, the price has reached a key long term juncture, where a long term falling trend line meets an important horizontal resistance at 109.70. Only a break above that area may signal a big move to the upside with a first target at 110.70.

For now, I would expect the current upside move to halt, and we could see a short term bearish move towards 109.10 and possibly the 200 days simple moving average at 108.70.

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