Thread: Short Term Technical Analysis for Majors (07:00 GMT)

EURUSD
EURUSD remains unchanged trading sideways between 1.3720 and 1.3665. This is causing the price to trade at the 55 and 20 moving average on the 1 hour chart. Overall the dollar remains strong on expectations of a further reduction in US monetary stimulus. However we expect limited action as many markets are still on Holiday
Res: 1.3720, 1.3750, 1.3785
Sup: 1.3665, 1.3645, 1.3620


GBPUSD
Sterling did produce some action today as we saw it break its first resistance level 1.6370. It continued its rise to test the next resistance level 1.6400 but failed to break it and retraced. This was a good sign for the bulls and outlook will remain upwards if it stays supported at 1.6320 (today’s pivot point). However generally there is no trend formation on the H1 chart and we still consider it to be range mode
Res: 1.6400, 1.6440, 1.6480
Sup: 1.6320, 1.6285, 1.6250


USDJPY
Most currency pairs have fallen in range trading mode during this thin volume holiday period. However the USDJPY is the exception as we see a clear upward trend formation as it continues to break resistances and achieve new highs not seen since 2008. It recently broke 104.40 and 104.60 to achieve new high at 104.80. Next target is 105. On precautionary note we see the RSI above the 70 level indicating we might see a brief retracement from these overbought levels before we continue to go up on the H1 chart
Res: 105, 105.20, 106
Sup: 104.30, 103.75, 103.40


GOLD
RSI moving horizontally indicating weak buying and selling momentum due to thin volume holiday trading. This is further confirmed as we see Gold prices are now exactly at their 20 and 55 moving averages on the 1 hour chart plus MACD is near 0 and Momentum 22 near 100 level. The current boundaries are 1215 and 1190.
Res: 1215, 1227, 1245
Sup: 1190, 1180, 1167

Due to festive season most of the pair are going to be very passive, might have some considerable movement next week..........