EUR/USD, GBP/USD And EUR/GBP Forecasts – Currencies Drift Around on New Year’s Eve

Blue River

Forex

Technical Analysis

Summary:

Currencies continue to see a bit of a drift overall, as the markets continue to see questions asked of central banks.

EUR/USD, GBP/USD And EUR/GBP Forecasts – Currencies Drift Around on New Year’s Eve_1

EUR/USD Technical Analysis

The Euro has fallen just a bit during the early hours of Wednesday, only to turn around and show signs of life again. All things being equal, this is a market that I think is still struggling with the idea of the 1.18 level being massive resistance. I think that resistance extends all the way to the 1.1850 level, and therefore, you have to recognize that it's very likely going to be a situation where we rally again, then we show hesitation.

It is New Year's Eve as I do this video, so I wouldn't look for much until next week, although obviously Friday will be open. It's still got the vibe of a more fade-the-rally type of market than anything else.

GBP/USD Technical Analysis

The British pound is also looking like it is going to continue to see the 1.35 region as its barrier. It did fall early in the session, and I think this is another situation where we rally, we show signs of exhaustion, and then we turn around and fall again. If we can break above the 1.3550 level and close above there on a daily candlestick, I think maybe then you have a shot at going to the 1.37 level.

EUR/GBP Technical Analysis

The Euro has risen quite nicely against the British pound here during the trading session on Wednesday, and at this point in time I think we've got a situation where the 50-day EMA and the 0.8750 level loom large as resistance. At the first signs of exhaustion, I'm more than willing to start selling this pair. But if we were to break above that area, then we could go looking to the 0.88 level, where I would expect even more resistance. I'm not looking for big moves; I just recognize that we have a bit of a ceiling overhead, especially when you look at longer-term charts.

Source: FX Empire

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