Dec 18 2020 0
Here we have the chart analysis of the most traded currency pairs of today, December 18th.
- The dollar fell to a multi-year low at the start of Thursday's European session as increasing confidence in both the new US stimulus package and the Brexit deal encouraged the market's risky demand.
- The Fed also announced it would continue its monetary stimulus until the economic recovery of the United States was assured.
- Bitcoin hit record highs on Thursday, just a day after it crossed the $20,000 mark for the first time in history, investors are increasingly showing their interest in this cryptocurrency.
- UK Interior Minister - Priti Patel said the Brexit talks have reached a decisive stage, the UK is working hard to get an agreement but if there is no, the UK will also prepare.
- UK consumer confidence shows signs of improvement.
The price fell as expected after the bearish signal on the H4 charrt but then failed to cross the 103 level and created a false breakout around this zone. Currently, the price has recovered to above this support, creating two spinning top patterns. Short-term reversal traders might consider buy orders at the 103.6 conversion price zone. The next price action in this zone will determine what we should do within the next few days.
The price bounced up as expected and broke our first target, around 1.225. If you have a long orders, you should consider partially exiting the order and/or moving the Stop Loss to preserve profits and reduce risks. Our next target is around 1.23, but be cautious with unexpected corrections. We should not add new commands at this time.
The 1.355 zone has been broken and the price has approached the target zone of 1.365. The selling pressure around this zone was evident through long shadows and red bodies. With these signals, in the short-term, it is likely that the price will correct at least to the 1.345 area, and furthermore, fill the gap created at the beginning of the week.
The price did not drop as much as expected but continued to accumulate in a narrow range after the bearish signal on the H4 chart. However, there are no significant negative signals to our short positions. Keep your current selling strategy and short positions. In case the price breaks down of the range below, you should consider adding short orders with a target of the 1.260 zone.
The price has invalidated the forming multi-peak pattern and followed the second scenario, which means an upper breakout. Currently, the target 0.765 has been approached, but the breakout force is quite good and there has not been ,uch significant selling pressure, so the price might continue to go up. We should wait for the opportunity to add more long orders. The target is around 0.770 - 0.775.