15^th December 2021 Technical Analysis

EURUSD

EURUSD fell on Wednesday and based on the US dollar is relatively moving horizontally, so it is recommended to look for opportunities to short the currency pair at a relative high level. The technical bias is bearish due to the recent downtrend.

The pair is currently trading near 1.12650, and multiple resistance levels can be seen above which may prevent the price from rising further.

Resistance level1: 1.12780

Resistance level2: 1.12950

Resistance level3: 1.13100

Below the price, multiple support levels can be seen which may prevent the price from falling.

Support level1: 1.12500

Support level2:1.12400

Support level3: 1.12260

On Tuesday(14th December), the USD index rose to 96.54, up 0.2%, while it was down 0.2% in the London session. The rebounds of USD essentially helped the greenback strengthen against the EUR, and the higher-than-expected US inflation data could push US interest rate up earlier and more sharply. With US and European stock indices failing, expectations of a lower Omicron outbreak, the dollar’s safe-haven ability has improved.

On Wednesday(15th December), Federal Reserve will release its latest interest rate decision, with expectations of a rate hike or being hawkish suggest favorable to the USD. Therefore, it is bearish for the EURUSD currency pair, and vice versa.

Looking at the current price trend and economic development, it may be a good trading choice to sell the EURUSD currency pair at a relative high level.

GBPUSD

On Tuesday(14th December), the USD sell-off pushed the pound to the new highs against US dollar approaching 1.3250 in the European session. The relatively upbeat UK employment data will further support the pound to the upside with a bullish technical bias.

The pair is currently trading near 1.32324, and multiple resistance levels can be seen above which may prevent the price from rising further.

Resistance level1: 1.32500

Resistance level2: 1.32750

Resistance level3: 1.32900

Below the price, multiple support levels can be seen which may prevent the price from failing.

Support level1: 1.32200

Support level2: 1.31950

Support level3: 1.31730

The Federal Reserve will announce the interest rate decision on Wednesday (15th December), and the Bank of England is scheduled for a meeting on Thursday (16th December) and announce the rate decision. And with the recent implementation of COVID-19 restrictions and the uncertainty on the Brexit trade agreements, further appreciation of the pound is expected to be limited ahead of the interest rate decisions.

Looking at the current price trend and economic development, it may be a good trading choice to buy GBPUSD pair at lower levels near current price.