CFDs Technical Overview With Priced-In Hike By Feds
FxGrow | Dec 13, 2017 06:54
Most markets are highly anticipating a rate hike today by the U.S. Fed with 0.25% basis to 1.25%. Analysts are supporting the rate hike decision, especially since Janet Yellen has recently stressed that any future hikes will be subject to economic data. As a result, we have seen the DXY rallying by $1.78 since Nov. 27.
Last year when the Fed hiked rates, the market saw an opposite performance for the dollar index, and instead of further upside action, the DXY was sold off aggressively, which leaves us wondering if the same scenario will be repeated as the has market anticipated the hike and it was priced it in. Now, eyes will be focused on the FOMC statement and projections for 2018, and whether they will drop a hawkish or dovish tone.
Last but not least, yesterday's win by Democrat Doug Jones, taking the U.S. Senate seat in Alabama has flipped the cards for U.S. President Donald Trump's tax plan. Trump will give more hints today about so his long-awaited tax reform plan. As a result, the U.S. dollar faces two battles, first as the FOMC releases its statement, and second, as Trump updates his tax plan.
CFD's technical overview:
MAR US DOLLAR
Closing price: 93.825
Target price: 93.755 achieved
Resistance levels: 93.755*, 94.01
Support levels: 93.89, 93.17, 92.77*
Trend: Sdwys/Up
trend reversal price: 92.77
Comment: The market has worked into a short-term bottoming/bullish pattern with rallies pushing beyond the 93755* resistance, giving bull signals for a climb to 9434+. Any near-term dips should try to hang in sideways congestion, stabilizing over 9317. A close under 9277* is needed to reverse back to lower prices.
MAR B-POUND
Closing price: 1.3366
Target price: 1.3289
Resistance levels: 1.3441-58, 1.3504*
Support levels: 1.3355, 1.3289*
Trend: Sdwys/Down
Get The App
Trend reversal price: 1.3504
Comment: The market is signalling a short-term negative turnover and warns for a larger selling wave to 1.3289*. A sustained press below 1.3355 will fuel sell-offs. Any corrections contained to narrow sideways congestion should bear flag into additional sell-offs. A close over 1.3504* is needed to reverse back to higher prices.
MAR CANADIAN$
Closing price: (77855)
Target price: None
Resistance levels: 7829, 7869*, 79585*
Support levels: 7760-45, 7672-
Trend: Sdwys/Down
Get The App
Trend reversal price: 79585
Comment: The market still favors reactionary sell-offs to test the previous week's low. A penetration below 7758-54 could possibly open up a bear target to 7672-. Any corrections will likely fade in the low 7800s. Only a close over 7869* stops aggressive bear forces. A close over 79585* is needed to mark a bull turn for a drive to 8000+/-.
MAR EURO
Closing price: (1.1821)
target price: None
Resistance levels: 1.1880, 1.1904, 1.1949*
Support levels: 1.1799*, 1.1728
Trend: Sdwys/Down
Get The App
Trend reversal price: 1.1954
Comment: The current slide puts short-term trend forces down and warns for a larger unfolding selling wave to 1.1700. Trade is poised for selling and a close under 1.1799* will fuel sell-offs. Trade may recover for near term congestion up near 1.1900. However, a close over 1.1949* is needed to highlight a reversing upturn for a bull wave over 1.2000+.
MAR J-YEN
Closing price (88545)
Target price: None
Resistance levels: 88945, 89305*, 8984*
Support levels: 8831-, 87825-
Trend: Down
Trend reversal price: 89865
Comment :The market is in a downturn and suggests further washouts to 8831-. A close under 8831 is negative. We may see some corrective congestion, but keeping corrections trapped below 89305* should maintain a bear alignment. Only a close over 8984* alerts for a reversing turn.
MAR SWISS
Closing price: (10156)
Target price: None
Resistance levels: 1.0188, 1.0222, 1.0257*
Support levels: 1.0038-25, 1.0000-
Trend: Sdwys/Down
Get The App
Trend reversal price: 1.0257
Comment: The market is short-term bearish and a close under Friday's low alerts for a selling wave to attack the 1.0062 low. Suspect a fight to correct for a few days. Narrow corrective congestion around 1.0200 for a few days will likely bear flag. A close over 1.0257* is needed for a shift back to the upside.
MAR AUSSIE$
Closing price: (7554)
Target price: 7430
Resistance levels: 7579, 7592*
Support levels: 7495-?, 7430-10
Trend: Sdwys/Down
Get The App
Trend reversal price: 7592
Comment: The market is bearish. Despite corrective rebounds the past couple days, the pattern alerts for a potential wash to 7430-. Trade is poised for follow through selloffs with a close under 7498 fueling declines. Any further corrections should struggle with previous congestion levels over 7550 and tight congestion should bear flag. A close over 7592* is needed for a reversing turnaround.
FEB GOLD
Closing price: 1246.40
Target price: 1233
Resistance levels: 1254.00-1256.00, 1260
Support levels: 1233- 1220+
Trend: Down
Trend reversal price: 1265.10
Comment: The market is bearish, alerting for an acceleration in the selloff, opening up potential for a drop to 1233. The pattern still warns for pressing selloffs. Any corrections will likely find downside forces keeping trade in sideways congestion, stopped in the upper 1250's. A close over 1265.10* is needed to alert for a reversing turnaround.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.