Technical Analysis Dec.8th

by on December 8, 2014 7:25 am BST


EURUSD currency pair has just approached the recently-set 2014 low at 1.2271. It is likely that bears will try to test this level on Monday. If successful, the pair may decline down to monthly S2 in the short-term, which is also reinforced by weekly S1 at 1.22. In case of failure, we would assume the Euro to increase in value, at least up to monthly S1 around 1.2340 during the trading day.

Traders’ Sentiment
Distribution between bullish and bearish opened positions remains slightly positive at the moment, as 53% and 47% of them are long and short, respectively. Pending orders in both 50 and 100-pip ranges from the spot price are almost on the same level, with only 32-33% of them are set to buy the Euro. 

EURUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.2481 1.2465 1.2437
Resistance 2 1.2437 1.2429 1.2391
Resistance 1 1.2359 1.2343 1.2362
Pivot 1.2315 1.2307 1.2315
Support 1 1.2237 1.2221 1.2268
Support 2 1.2193 1.2185 1.2239
Support 3 1.2115 1.2099 1.2193


The strength of the upper trend-line and the major level at 1.57 dragged the pair below the 1.56 mark for the first time this year. Shortly the Pound/Dollar cross will face the weekly and monthly S1 at 1.5518/1.5484. The technical indicators remain mixed, thereby not helping to evaluate the next movements. Nonetheless, the pair remains bearish for now.

Traders’ Sentiment
The SWFX traders are getting less and less convinced that the Pound is going to gain relative to the U.S. Dollar; but overall the bulls are still in a slight majority, as they take up 55% of the market, and this is a advantage over the bears (45%). In the meantime, the share of sell orders grew from 66% up to 67%.

GBPUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.5784 1.5766 1.574
Resistance 2 1.574 1.5731 1.5691
Resistance 1 1.5658 1.564 1.5661
Pivot 1.5613 1.5604 1.5613
Support 1 1.5531 1.5513 1.5565
Support 2 1.5486 1.5477 1.5535
Support 3 1.5405 1.5387 1.5486


The Greenback continues to reach new highs this year and most likely it will continue to do so, if the pair will remain supported by the bullish trend-line. Since the pair is still showing bullishness, we see the pair targeting the weekly R1 and monthly R2 at 122.86/123.16 this week. At the same time technical indicators are mixed and pointing sideways.

Traders’ Sentiment
The sentiment of the SWFX market participants remains neutral with respect to USDJPY, since 50% of the market participants are long. At the same time the gap between the buy (56%) and sell (44%) orders has narrowed.

USDJPY Pivot Levels Pivot Woodie Fibonacci
Resistance 3 124.16 124.4 122.92
Resistance 2 122.92 123.04 122.17
Resistance 1 122.18 122.42 121.7
Pivot 120.94 121.06 120.94
Support 1 120.19 120.43 120.18
Support 2 118.96 119.08 119.71
Support 3 118.21 118.45 118.96


Gold registered a rather strong downside movement on last day of the previous week. The bullion lost more than ten US dollars to hover around $1,190 at the end of the session. At the moment the metal is well supported by the weekly pivot point and 20-day SMA just below the current level of trading. However, taking into account bearish technical studies on the weekly time-frame, we predict the Gold to breach this demand area in the medium-term.
Traders’ Sentiment
During last 24 hours, market sentiment on Gold versus the Greenback improved further for the second consecutive trading day. At the moment as many as 61% of all SWFX traders suggest the metal will gain value, while on Thursday this scenario was expected by 58% of market participants.