EURUSD technical analysis
There has been a massive drop in the EURUSD pair in the last week and currently the price is testing one of the most critical support levels in the market. If the critical support level at 1.05707 fails to restrict the bearish momentum of the market then we can assume another large drop in price which might even exceed 400 – 500 pips. On the contrary, if the pair manages to find some fresh buying pressure at the current level then we can assume a minor correction in the pair towards the first critical resistance level at 1.07116.A valid break of the price above that level will bring another minor bullish correction in the pair which will ultimately drive the price towards the next critical resistance level at 1.08566.This level is going to play an important role since most of the professional traders will be looking for bearish price action confirmation signal to enter short at that level.
The overall sentiment for the EURUSD pair is strongly bearish at the current level and professional traders have no intention to enter long in this pair. Most importantly the upcoming week has very little fundamental news release for driving the price up. However, if ECB president Mario Draghi comes up with an extreme Hawking speech in the ECB press conference then we can assume the EURO might show some minor correction in the upcoming week. In the eyes of trained professional selling, this pair at higher prices with bearish price action confirmation signal will be the best possible trade setup at the current price action level. If the pair manages to break the low of 2nd December 2015 then we can again see a strong bearish rally in the market which will drive the price towards the next critical support level at 1.04457.From this level, the pair might get some fresh buying pressure but experts are suggesting that the EURO will eventually fall further breaking this critical support level.
GBPUSD technical analysis
The Great Britain pound was showing nice sign of recovery in the last month after the catastrophic downfall during the Brexit event. The pair found an initial at 1.19279 level from which it started its bullish correction. However, the bullish correction was restricted after hitting a high at 1.26796.The pair again falls sharply in the event of U.S presidential election which was held on 8th November 2016.Currently, the price is trading near the critical support level at 1.23251 and traders are cautiously waiting for bullish price action signal to enter long in this pair. If the critical support level at 1.23251 holds then the first initial bullish target for the GBPUSD pair would be the high of 10th November 2016.A valid break of the price above that level will lead this pair further north to test the critical resistance level at 1.27900.If the pair manages to clear the resistance level at 1.27900 then we can assume that the price has formed its initial bottom near the critical support level at 1.19279 level and its ready for it a strong bullish correction.
The current price action scenario in the GBPUSD pair suggest that fresh buying pressure is accumulating in the market gradually. In the eyes of trained professional, it’s better to go along with bullish price action confirmation signal near the critical support level at 1.23251.But expert strongly suggests not to enter too long until convincing bullish price action confirmation signal is formed in the market. On the contrary, if the current support level fails to retrace the bearish momentum of the market then we will see an imminent price drop in the GBPUSD pair towards the next critical support level at 1.20821.This level is going to provide a significant amount of support to the GBPUSD pair and experts are suggesting that the price will have a great deal of difficulty in breaking this level. However a clear decisive break f the critical support level at 1.20821 will bring strong bearish momentum in the market. The first bearish target for the pair would the next critical support level at 1.19221.From that level, the pair might show some bullish momentum which is most likely to fade away in this upcoming week due to the FOMC meeting minutes. Professional traders are cautiously waiting for the upcoming FOMC meeting minutes since the FED might give some clear indication in the market regarding their pending interest rate hike decision. If the FED gives a clear indication about their rate hike decision in the month of December then there is strong chance the Great Britain Pound will again fall sharply to create a new low in the market.
EURJPY technical analysis
There has been a strong bullish rally in the EURJPY pair in the last few days after it broke the critical resistance at 116.33 level. This level was pretty much significant to the traders since it was the channel top resistance. The first initial bullish target for the pair would be the critical resistance level at 118.45 level. This level is going to provide a significant amount of selling pressure to the EURJPY pairs since the price has respected this area for many times in the past. However, clear break of the price above that level will bring strong bullish momentum in the pair which is most likely to lead this pair to test the critical resistance level at 121.54.Professional traders are waiting for a minor retracement in the price to enter long in the EURJPY pairs with an initial bullish target of the first critical resistance level at 118.45.
The overall sentiment for the EURJPY pair is strongly bullish since the price has broken the critical resistance level at 116.33.Professional traders are waiting patiently for the price to retrace back to the support level to enter long with bullish price action confirmation signal. However, if the pair breaks the critical support level at 116.33 then we will again see a ranging movement in the pair inside the channel support level.