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FX.co ★ Technical analysis recommendations of EUR/USD and GBP/USD on December 16, 2021

Technical analysis recommendations of EUR/USD and GBP/USD on December 16, 2021

EUR/USD

Technical analysis recommendations of EUR/USD and GBP/USD on December 16, 2021

The bulls and the bears confront each other with approximately the same strength every day. As a result, uncertainty has shifted to the weekly timeframe, and the euro has been tied to the attraction and influence zone of the monthly level of 1.1290 for a long time. Today, the levels of the daily Ichimoku dead cross have gone down to the current location of the pair. Perhaps, the elimination of the cross (1.1337 - 1.1373) will help the bulls leave the current zone of attraction and consolidation. As for the bears, the nearest significant pivot point is the minimum extremum (1.1186).

Technical analysis recommendations of EUR/USD and GBP/USD on December 16, 2021

The bulls managed to regain the key levels in the smaller timeframes again, which are set at 1.1269 (central pivot level) and 1.1286 (weekly long-term trend) today. As a result, the advantage on the H1 chart is formed again on the bullish side. If the growth continues, the intraday upward targets can be noted at 1.1316 - 1.1346 - 1.1393 (the resistance of the classic pivot levels). Another change in mood and the loss of key levels (1.1286-69) will change the current balance of power in the smaller periods. At the same time, the relevance and value will return to the downward pivot points, namely at 1.1239 - 1.1192 - 1.1162 (support for the classic Pivot levels).

GBP/USD

Technical analysis recommendations of EUR/USD and GBP/USD on December 16, 2021

Yesterday, the initiative belonged to the bulls, who have updated yesterday's high and are still continuing to rise ahead of the resistance of the Ichimoku daily dead cross (1.3295 - 1.3337 - 1.3378). In the current situation, the main task of the bulls is to break through the levels of the daily cross and reliably consolidate above the resistance levels encountered. The attraction and support are still provided by the zone combining the lower border of the weekly cloud (1.3248) and the daily short-term trend (1.3231).

Technical analysis recommendations of EUR/USD and GBP/USD on December 16, 2021

The bulls managed to stay above the key levels, thus retaining the advantage in the smaller timeframes. Currently, the first resistance of the classic pivot levels (1.3304) is being tested; further resistances R2 (1.3349) and R3 (1.3415) serve as the next reference points. Today's key levels protect the interests of the bulls at 1.3238-30 (central pivot level + weekly long-term trend). The breakdown of levels can change the balance of power and priorities again.

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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.

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