Daily Forex forecast analysis 12-12-2017 – we analyzed the upcoming currency pairs and events of the day that could impact the Forex market. These analyses are published here each day.
Forex Forecast Analysis 12-12-2017 includes information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD.
We’ve mentioned in our yesterday daily forecast that some selling interest was due to emerge. The price action found resistance around the 1.1809 level and then dipped below the 4h chart 20 EMA. It found support there during the Asian session, but we expect a deeper retracement lower. This week is packed with data, both from EU and US, so volatility should be on high heels. The price direction will certainly be data dependent.
Below the 20 EMA, 1.1774-1.1781 is our resistance zone, followed by the 20 EMA. The 1.1809 level should be under pressure again if the EMA fades. Only a strong break above it should be able to push the price further.
On the downside, below the current daily low, 1.1751 follows. Last week low and 1.1721 level are expected to provide support below if the sellers resume impulsively.
- Zew Survey – Current Situation and Economic Sentiment are due at 10:00 am from the EU and Germany.
- From the US, a few PPI figures will be published at 01:30 pm.
Dollar-swiss continued to trade on the downside, following the upside gap at the weekly open. The price managed to find support around the 0.9898 support level. We’ve mentioned that level in our daily forecast as well. Currently, the price action is located back above the 1h chart 20 EMA. If the bulls will manage to push it forward, a big chunk of the weekly losses will be erased.
On the upside, resistance follows around 0.9923 and 0.9932 levels. Above those two levels, 0.9940 is next and if reached, almost all the weekly losses will be erased. The dollar could gain more ground as the market will focus on the tomorrow Fed meeting.
On the downside, we should see a strong selling candle that breaks below the EMA, first. That will confirm the sellers resumed impulsively. 0.9907 and then 0.9898, where yesterday it found support, could the next target for the sellers.
Cable had been under pressure for the last 24 hours and thus far no significant bullish sign can be seen. The market still digests the latest Brexit rumors. The outcome won’t be too good for the UK. They will need to continue to pay for the EU budget after the exit and grant a safe working environment for the EU citizens. The market participants are pricing in that and also the Fed meeting that is due tomorrow.
During the Asian session, some bullish interest can be seen. However, the move can barely cover one prior selling candle. We expect support to emerge around 1.3359 or 1.3382. The upside should be limited.
On the downside, a continuation lower will put pressure on 1.3317, last week low. If sellers break it, we expect a continuation towards the 1.3278 to follow.
- From the UK, PPI, CPI and Retail Price Index figures are due to being released at 09:30 am GMT.
Dollar-yen consolidated in a very narrow range for the last 24 hours. However, the price action is still above the trend line and 4h chart 20 EMA. That communicates the bulls have been able to keep the price at high levels. A further continuation on the upside seems the most likely scenario since no impulsive selling had emerged thus far. We expect to see how the price action will continue to develop in the next few hours.
If the consolidation will continue, the EMA, 113.32 and the trend line should serve as a great support area. Below, the 113.07 level will follow, so there is little room for the sellers. We expect the downside to be limited.
On the upside, 113.57 and the current weekly high should be under pressure if bulls resume. A continuation towards 113.75 and 113.97 will follow if a breakout takes place.
The Aussie retraced higher yesterday, although we can see some strong selling corrections. Overall, the price action is now treating the 1h chart 20 EMA as support. That could mean some further upside gains could follow in the short-term. However, there are some important US data due this week. If the optimism will continue, the downside could resume and the dollar could be favored again.
Currently, the price action is on the way up and heading towards the yesterday high. Resistance should be seen around that level and if a breakout higher takes place, a continuation towards 0.7556 should follow.
On the downside, a new break below the EMA should first be seen in order to confirm that selling pressure resumed strongly. 0.7514 and 0.7504 are due to act as support below the 20 EMA.