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27.12.202311:49 Forex Analysis & Reviews: EUR/USD and GBP/USD: Technical analysis for December 27

EUR/USD

Exchange Rates 27.12.2023 analysis

Higher Timeframes

At the moment, the bulls are committed to achieving their goal of a breakthrough to the Ichimoku cloud (1.1065). Perhaps, they will be able to reach this goal in the final days of 2023. The nearest support levels are marked at 1.1004 (the first target for the daily goal) and 1.0960 (the daily short-term trend + the final level of the weekly Ichimoku cross).

Exchange Rates 27.12.2023 analysis

H4 - H1

On lower time frames, the euro is in the area of the central Pivot level of the day (1.1033). Once bullish activity resumes, the resistance of the classical Pivot levels (1.1056 - 1.1070 - 1.1093) may come into play within the day. In addition, the bulls may aim for a breakout of the 4H cloud (1.1051). If priorities change and a decline develops, it will be crucial for the bears to overcome the weekly long-term trend (1.0986). Intermediate supports along the way may be 1.1019 and 1.0996 (classic Pivot levels).

***

GBP/USD

Exchange Rates 27.12.2023 analysis

Higher Timeframes

The market continues to trade around the area of 1.2738 - 1.2719 - 1.2702 (the final level of the weekly cross + the first target of the daily goal + the daily short-term trend). The main bullish reference point in this segment is still the 100% target level for a breakout of the Ichimoku cloud (1.2816). If the bulls manage to free themselves from the aforementioned area and influence of the 1.2737-19-02 zone, the attention will shift to the elimination of the daily dead cross, the final levels of which are now located at 1.2620 - 1.2580. The daily cross is now reinforced by an important level at 1.2589 (monthly short-term trend + weekly medium-term trend).

Exchange Rates 27.12.2023 analysis

4H - 1H

The bulls still have the advantage on the lower timeframes as the market continues to operate above key levels. Today's key levels are at 1.2711 - 1.2690 (central Pivot level + weekly long-term trend). Resistance of the classic Pivot levels (1.2738 - 1.2757 - 1.2784) serve as landmarks for the continuation of the upward movement intraday. A breakdown, consolidation below, and reversal of the movement can change the current balance of forces. As a result, supports of classic Pivot levels (1.2665 - 1.2646) will become the benchmarks.

***

The technical analysis of the situation uses:

Higher timeframes - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

Lower timeframes - 1H - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Evangelos Poulakis,
Analytical expert of InstaSpot
© 2007-2024
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