FX.co ★ Technical analysis recommendations of EUR/USD and GBP/USD on December 17, 2021

EUR/USD

We are closing the week today. The situation remains within the limits of the previously existing uncertainty. The bulls are making an attempt to leave the attraction zone of the monthly level of 1.1290. The resistances of the final levels of the daily dead Ichimoku cross (1.1325-58) are now located on their way. The elimination of the daily cross and a movement beyond the consolidation area will allow us to test the next strong and significant level set at 1.1439-92 (weekly and monthly levels).

The bulls retain their main advantage in the smaller timeframes, but their prolonged stay in the zone of the downward correction led to a new testing of the key levels, which are now located at 1.1323 (central pivot level) and 1.1291 (weekly long-term trend). The breakdown of these support levels can change the current balance of power. The resistances of the classic pivot levels (1.1366 - 1.1402 - 1.1445) serve as upward targets, while the support for the classic pivot levels (1.1287 - 1.1244 - 1.1208) serves as the downward targets on the H1 chart.

GBP/USD

The bulls are currently testing the resistances of the Ichimoku dead cross. A breakdown and a sharp consolidation above the final levels of the cross (Kijun 1.3337 + Fibo Kijun 1.3378) will allow us to hope to maintain the bullish potential, which is so necessary for the continuation of growth. The next pivot points will be weekly resistances (1.3448-97). However, if a rebound occurs from the met resistance and the decline continues, the euro may be supported by the previously broken levels of 1.3295 (daily Fibo Kijun) and 1.3267-48 (daily short-term trend + lower border of the weekly cloud).

There is a downward trend in the smaller timeframes. The support of the central pivot level (1.3311) is being tested. The most important support level is located slightly lower, namely at 1.3252 (weekly long-term trend). Its breakdown will require a new assessment of the situation, as it will affect the change in the balance of power. The resistance of the classic pivot levels (1.3382 - 1.3444 - 1.3515) currently serves as upward pivot points. In turn, the support for the classic pivot levels can be noted at 1.3178 and 1.3116 today.

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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.