MARKET BRIEFING – TECHNICAL ANALYSIS 23.12.2015
EURUSD
The intraday technical outlook
EURUSD, Tuesday continued to trade higher as the price action remained within a well-defined but narrow up channel.
This morning, the EURUSD has broken down from its up channel.
The price action did consolidate within an early morning range however the selling pressure returned and EURUSD subsequently traded lower.
If the 1.0900 level is breached, the initial downside target is 1.0850 which corresponds to today’s ATR downside projection.
Alternatively, a bounce off the 1.0900 could see EURUSD test the 1.1050 resistance level and the 1.1055 which corresponds to today’s ATR upside projection.
This morning’s line of control was calculated to be at the 1.090 level. However due to the developing price action, a sustained breach of this will change the trend from up to down.
GBPUSD
The intraday technical outlook
GBPUSD, Tuesday continued to sell off following worse than expected PSBR number.
This morning, the GBPUSD has traded with a slight upward bias but has been unable to make a sustained break away from its opening range.
If GBPUSD does trade higher during the afternoon session, the initial target is the 1.4900 and then the 1.4930 level. The latter level which corresponds to today’s ATR upside projection.
A breach of the 1.4915 level would also signal a change of the one hour trend from down to up.
However, as the price action is contained within a large, downward sloping channel, there is a strong possibility that any rally will be short-lived?
Alternatively, a failure to sustain higher prints could see GBPUSD test the 1.4800, and the 1.4720 levels. The latter level corresponding to today’s ATR downside projection.
USDJPY
The intraday technical outlook
USDJPY, Tuesday traded with a slight downward bias.
This morning, USDJPY has experienced a very mild bounce with the price action contained within its opening days range.
A continuation of the rally could see USDJPY test the 122.00 and 122.05 resistance levels. The latter level corresponding to the ATR upside projection.
A breach of the 121.50 level would also signal a change of the one hour trend from down to up.
Alternatively, a failure to sustain higher prints could see USDJPY test the 120.05 level which corresponds to today’s ATR downside projection.
USDCHF
The intraday technical outlook
USDCHF, Tuesday had initially traded lower as the price action rejected higher prices following the break of it’s up the channel.
This morning USDCHF has found support at the 0.9850 level and this has enabled this pair to experience a modest rally.
If USDCHF does trade higher during the afternoon session, the initial target is the 0.9950 and then the 0.9960. The latter level corresponds to today’s ATR upside projection.
A breach of the 0.9940 level would also signal a change of the one hour trend from down to up.
Alternatively, a failure to sustain higher prints could see USDCHF test the 0.9850, and the 0.9780 levels. The latter level corresponding to today’s ATR downside projection.
USDCAD
The intraday technical outlook
USDCAD, Tuesday traded lower in a corrective fashion.
This morning, USDCAD is trading in a tight opening range as the markets await significant afternoon Canadian data.
If USDCAD does trade lower during the afternoon session, the initial target is the 1.3875 and then the 1.3810. The latter level corresponds to today’s ATR downside projection.
A breach of the 1.3850 level would also signal a change of the one hour trend from up to down.
Alternatively, a failure to sustain lower prints could see USDCAD test the 1.4030 level which corresponds to today’s ATR upside projection.
AUDUSD
The intraday technical outlook
AUDUSD, Tuesday continued to trade higher following the breach of its down channel.
This morning, the AUDUSD has traded within its opening days range with the price action attempting to breach the overnight lower pivot that can be found at the 0.7220 level.
If AUDUSD does trade lower during the afternoon session, the initial target is the 0.7145 level which corresponds to today’s ATR downside projection.
A sustained breach of the 0.7220 level would also signal a change of the one hour trend from up to down.
Alternatively, a failure to sustain lower prints could see AUDUSD test the 0.7300, and the 0.7325 levels. The latter level corresponding to today’s ATR upside projection.
GOLD
The intraday technical outlook
Gold, Tuesday continued to trade lower in a corrective fashion.
This morning, the price action has been contained with a narrow opening range.
If Gold does trade lower during the afternoon session, the initial target is the 1066.75 and then the 1057.00 level. The latter level corresponds to today’s ATR downside projection.
A sustained breach of the 1066.75 level would also signal a change of the one hour trend from up to down.
Alternatively, a failure to sustain lower prints could see Gold test the 1088.0.0 which corresponds to today’s ATR upside projection.
OIL
The intraday technical outlook
Oil, Tuesday continued to trade higher following a bounce off the 35.50 level.
This morning, the Oil has traded within its opening days range and is now testing the upper level of its down channel.
If Oil does trade higher during the afternoon session, the initial target is the 38.1 5level which corresponds to today’s ATR upside projection.
Alternatively, a failure to sustain higher prints could see Oil test the 35.80 and the 35.15 levels. The latter level corresponding to today’s ATR downside projection.
A sustained breach of the 35.80 level would also signal a change of the one hour trend from up to down.
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