Daily Forex forecast analysis 12-29-2017 – 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 12-29-2017 includes information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD.
Here we go everyone, the last trading day of the year. The euro looks set to end the year dominating the US dollar. We see little selling pressure thus far and the 1h chart 20 EMA does its job as support. If the conditions will remain the same, last month high around 1.1960 will be under pressure in maximum a few hours. Although we had some selling, that is not enough to cover the bullish momentum.
The price action seems to be building up a short-term bottoming formation around the EMA. It looks like a new surge towards yesterday high + last month high will follow. Breaking that area will open more space for the buyers.
On the downside, buying resumed around the EMA so that’s our first support. A strong break below it will trigger further selling towards 1.1922 or even 1.1909.
- From Germany, CPI figures and HICP figures are due to being published at 01:00 pm.
As we have anticipated in our yesterday daily forecast, the price action has extended lower. It reached the 0.9777 key swing point and support level and have consolidated during the Asian session. Looking ahead, it is hard to believe the market will just reverse on the upside. Some further weakness is expected to follow. Since buying interested is reduced at this point, shorting the pair looks more appropriate.
In terms of support, if the 0.9777 key level will fade, together with the yesterday low, we expect sellers to push the price towards 0.9758. The low established on December 1st, 0.9733 will follow then.
On the upside, we can see a short-term rejection off the 0.9800 level. Sellers could emerge again there if the price jumps. A breach on the upside could open more space for buyers towards 0.9814 and 0.9834.
Cable managed to break above our descending trend line and consolidated afterward. Since no significant selling could be seen thus far, we expect the pair to continue to break higher. At the price of writing the price action suggests that the bulls are eager to drive the price higher. We do not think a strong selling move could emerge at this point. However, keep in mind that it is the last trading day of the month and year. Things could get volatile due to low liquidity.
Since the bulls are currently pressuring the price around the yesterday high, we assume the leg up could extend towards 1.3466. 1.3478 and 1.3510, could follow as resistance levels if the trend will extend.
On the downside, we expect the price action to be located above the 4h chart 20 EMA. Until that point, we also have 1.3432 and 1.3418 that could spark some bullish momentum.
The yen also managed to gain ground against the US dollar. It seems like the move tends to continue since the sellers are currently pressuring the yesterday low. Since a strong break below the EMA took place, that communicates the order flow is now driven by the sellers. There is no sign at this point which could point out that buyers regained control. From the contrary, we expect further downside.
If the sellers will continue to pressure the yesterday low, a breakout could follow. That could open more downside space towards 112.50 and 112.31. Keep in mind that since it is the last trading day, sharp spikes could be seen today.
On the upside, so far we can see resistance around the 112.88 area. Sellers did not allow any break above that area so far. Only a breakout above yesterday high could signal buyers could push the price higher.
As we expected, the Aussie found resistance around the 0.7807 key level and the bullish trend stalled. However, the selling pressure had not been strong enough and we can see buyers are currently pushing the price towards yesterday high. Will be interesting to watch what will happen today. Since the bullish trend is so impulsive and covers so much ground, the most likely scenario seems to be an extension higher.
Buyers will first need to clear out yesterday high. If that will take place, then 0.7831 resistance will be our next target.
On the downside, support is expected to emerge around the 0.7774 level. The 20 EMA + 0.7762 level are also expected to act as a support zone and cap the downside.