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Technical Analysis for 14/12/2016

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Technical Analysis for 14/12/2016

Technical Analysis for 14/12/2016
December 14
09:00 2016

EUR / USD – EURO US DOLLAR

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The investors` mood in Germany hasn’t changed, even though the economic growth was forecasted. The euro is falling.

The bearish trend is still in the market. The currency pair EUR / USD stays in the descending channel. The euro is moving downwards, even though it managed to stay for a while at the level 1,0600. The dollar compensated partly for the losses, and sellers strengthened their positions in the market. All day the dollar was moving around the level 1,0600, trying to pass it. But the currency pair EURUSD did not manage to pass it.

The support is located at the level 1,0600, the resistance – at the level 1,0650.

MACD is moving downwards, RSI stays in the neutral zone.

A descending trend will stay. The first and the main target is the level 1,0600.

After the currency pair EURUSD passes this level, it can move down to the levels 1,0550 and 1,0500.

GBP / USD – BRITISH POUND DOLLAR

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The data published by Great Britain influenced the British currency in a very controversial way. The consumer prices were higher than forecasted that provided some support to the British currency. The data on the purchase prices rate also influenced the pound in a very positive way.

But in comparison with the previous year, the rate was still much lower.

Bulls are ruling the market. After the currency pair GBP / USD passed the level 1,2600, the pound grew till the weekly maximum – the level 1,2700.

The support is located at the level 1,2600, the resistance – at the level 1,2700.

MACD is growing that indicates the strengthening of the sellers` position.

RSI stays in the overbought zone. There is a possibility that the currency pair GBPUSD will grow till the level 1,2740. If the currency pair drops below 1,2650, then the descending trend will continue till the level 1,2600.

USD / JPY – US DOLLAR JAPANESE YEN

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Neither Japan nor the USA provided any important news that could influence the currency pair USD / JPY. Investors are looking forward to the meeting of FOMC, where it will be decided whether the rate in the USA will grow or not. If that happens, it will provide a stable growth base for the US dollar.

The ascending trend stays. Bears managed to lower the prices, even though for a very short time. The dollar stopped growing at the level 116,00.

Further the currency pair USDJPY approached the level 115,00, where it stopped.

The support stayed at the level 115,00, the resistance – at the level 116,00. MACD stayed at the previous level. This indicates that the buyers` positions are strengthening. RSI left the overbought zone.

The bullish trend is still in the market, though the price still can change the direction of the movement. If the pair manages to pass the level 116,00, it can move upwards to the level 117,00.

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3 Comments

  1. Mark
    Mark December 14, 11:30

    Why will the FED actions lead to the euro suffering first of all?

    Reply to this comment
  2. Alex Gray
    Alex Gray December 14, 12:54

    The answer is simple. At a time when the Fed raises interest rates, the European currency, as an object for investment, becomes even less attractive as the difference in interest rates is only increasing.

    Reply to this comment
  3. Ivan Proskurnya
    Ivan Proskurnya December 14, 14:10

    Really, if FOMC raises interest rates, it will lead to the demand recovery of the dollar. But there is also a possibility that after the rates raise, the US dollar may even temporarily fall against the euro.

    Reply to this comment

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