Technical recommendations for EUR/USD and GBP/USD on 12/17/20


The bulls successfully rose above the resistance limits (1.2170-77) and closed yesterday's trading above it. Their main task for the remaining two days of the current week is to maintain their positions and confirm the close above the level of 1.2177 in the weekly time frame. Consequently, new upward prospects and plans are likely to be considered. On the other hand, returning below the level of 1.2170 and losing the daily short-term trend (1.2147) may lead to the formation of a rebound, with the possibility of its further development to support the monthly cloud (1.2019).

The upward trend is currently in its active phase in the hourly time frame. All analyzed technical instruments supported the bullish traders, so now, they are testing the first resistance of the classic pivot levels R1 (1.2232). Other pivot points within the day can be noted at 1.2266 (R2) and 1.2319 (R3). Today, the key levels of the smaller time frame are joining forces, forming a support zone at 1.2179-51 (central pivot level + weekly long-term trend). These levels are strengthened by the support of the higher TF, so settling below will significantly affect the current balance of power and will require a new assessment of the situation. The support levels today are 1.2092 (S2) and 1.2058 (S3).


The pair continues to move upwards. Although it failed to close above 1.3538, the bulls still tried to rise. As a result, a new current high is indicated today. The target in the current conditions can now serve as an upward target for the breakdown of the four-hour cloud (1.3578-1.3627). If the bulls take a break in the near future and start losing positions, the loss of 1.3538 - 1.3481 may indicate the end of growth and the formation of a rebound. In this regard, a decline to the lower limit of the monthly cloud (1.3350) will be considered.

The development of the upward trend remains. The bulls rose above the initial resistance of the classic pivot levels R1 (1.3561), and as a result, the resistances R2 (1.3616) and R3 (1.3680) serve as bullish targets within the day. For today, the key levels are forming support in a quite wide range at 1.3497 (central pivot level) and 1.3368 (weekly long-term trend). The nearest support at 1.3442 (S1) can be noted.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classical), Moving Average (120)

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