Forex And Cryptocurrency Forecast For December 7 - 11

As for the forecast for the coming week, summarizing the views of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

EUR/USD

The higher this pair rises, the more willingness of large speculators to start taking profit on it. Moreover, the end of the financial year is just around the corner, it's time to take stock. In order for the dollar to continue its fall, the risk sentiment needs constant recharging, but the market may lose it. US stock indexes have been holding sideways since November 9. But this stability is very relative and threatens with a sudden collapse, which will entail the withdrawal of investors from the stock market in favor of the dollar.

For example, a reassessment of the optimistic expectations related to vaccination against the COVID-19 may lead them to this. And there are reasons for this. For example, the Pfizer has already reported problems with supplies, due to which the volume of vaccine production in 2020 will be halved, from 100 million to 50 million doses. A sharp rise in the yield of 10-year US government bonds could also strike the stock market. And you never know what else can happen this year rich in surprises.

There will be a meeting of the European Council, the ECB's decision on the interest rate and a subsequent press conference by the bank's management on Thursday, December 10. But the meeting of the US Federal Reserve on December 16 seems to be more interesting.

At the moment, graphical analysis on H4, 90% of trend indicators and 75% of oscillators on H4 and D1 are colored green. However, the remaining 25% of the oscillators are already giving active signals that the pair is overbought. The pair is expected to decline to the 1.1850-1.1950 zone by the majority (65%) of experts as well, supported by graphical analysis on D1. Immediate support is at 1.2000. Resistance levels are 1.2175, 1.2200, 1.2260 and 1.2320;

Forex and Cryptocurrency Forecast for December 07 - 11, 20201

 

GBP/USD

Significant for this pair is the level of 1.3500, which it reached at the end of last week. Graphical analysis, 100% of trend indicators and 85% of oscillators on H4 and D1 predict further movement to the north. Resistance levels are 1.3625 and 1.3725. However, only 40% of analysts agree with this scenario. The remaining 60% believe that this pair will also turn down, following the EUR/USD reversal. Moreover, if the negotiations on Brexit do not come out of the impasse, its fall may turn into a collapse. However, even if the agreement is concluded, it is likely to be formal and very limited, and is unlikely to please the fans of the British currency. Support levels are 1.3400, 1.3285, 1.3175. The ultimate goal of the bears in December is to return to the 1.3000 horizon;

USD/JPY

The dollar and the yen have reached a temporary truce due to rising risk sentiment, moving to a sideways trend. However, the pair never went beyond the medium-term channel, along which it smoothly slides south since the end of March. And the vast majority of experts (70%), supported by graphical analysis on D1, believe that this downtrend will continue. More precisely, it will be a lateral movement with a dominance of bearish sentiment. The main resistance will be the level of 104.50, fighting off from which, the pair will fall first by 100 points lower, and then reach the November 9 low in the zone of 103.15.
An alternative point of view is held by 30% of analysts who expect that the pair will first reach the upper border of the two-week sideways channel 104.75, and then try to consolidate above the horizon of 105.00. The next target of the bulls is 105.65;

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Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is ...

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