Dear Traders,
These are the very last days of the year and many institutional investors have already closed their books. Despite some important economic reports scheduled for release within the next 3 days, this shortened trading week is expected to be very quiet.
The most important reports coming from the U.S. will be Q3 Gross Domestic Product figures, Existing Home Sales due for release on Tuesday and Personal Income scheduled for release alongside Durable Goods Orders on Wednesday. Most of these reports are expected to show softer numbers, which may lead to a minor weakness in the U.S. dollar's uptrend. However, going into 2016, monetary policy remains the dominant theme. With the Federal Reserve remaining on track for tighter monetary policy while other central banks are tending towards an accommodative policy stance, the dollar should receive attraction throughout 2016.
Sterling traders should keep an eye on the U.K. GDP numbers, due for release on Wednesday. If data will be in line with expectations, the impact on the currency pair will be limited.
Let's have a look at the technical side:
EUR/USD
As previously noted, traders should pay attention to the 1.08-level. Prices formatted a head-shoulders pattern, predicting upcoming bearish momentum once the 1.08-mark is significantly breached to the downside. Lower targets could be at 1.0708 and 1.0640. We see an important support area at 1.0550. Below 1.0520, the currency pair could free-fall towards 1.0465 and 1.04. However, current resistances could be at 1.0930 and 1.10. With sustained prices above 1.10 we consider the head-shoulders pattern as void.
GBP/USD
Sterling is currently trading around the support line of its downward channel. A break below 1.4850 could reinvigorate fresh bearish potential, whereas a break above 1.4965 may drive the pair towards 1.50 and 1.5050.
We wish traders profitable trades just before the Christmas holidays and recommend not to invest too much during these days and take profits at smaller targets.
Please note that we will take a Christmas break from December 23 until January 1. During this period we will not provide our signal service. We will be back on January 4.
We wish everyone Happy Holidays as well as a healthy, joyful and prosperous New Year.
Here are our daily signal alerts:
EUR/USD
Long @ 1.0890 SL 25 TP 20 - 35
Short @ 1.0830 SL 25 TP 20 - 35
GBP/USD
Long @ 1.4940 SL 25 TP 20, 40
Short @ 1.4880 SL 25 TP 20, 40
We wish you good trades and many pips!
Any and all liability of the author is excluded.
