16^th December 2021 Technical Analysis

EURUSD

On Wednesday (December 15), EURUSD rose. Since the Federal Reserve interest rate decision was less hawkish than the market expected, and the United States retail sales data was less than expected, EURUSD recovered the European session losses and rebounded sharply, the day closed up 0.3%.

Today (December 16^th) the European Central Bank (ECB) will announce its interest rate decision, the market expects the current policy of the ECB unchanged. Due to the lower lows in the recent downtrend, EURUSD technical bias is bearish.

The pair is currently trading near 1.12888, and multiple resistance levels can be seen above which may prevent the price from rising further.

Resistance level1: 1.13220

Resistance level2: 1.13500

Resistance level3: 1.13800

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

Support level1: 1.12550

Support level2: 1.12200

Support level3: 1.11850

The 4-hour chart indicates a limited upward space for EURUSD, as the price is below the 30 days moving average. Therefore, given the current price trend and economic developments, it may be a good choice to sell the EURUSD pairs at higher levels near current level.

GBPUSD

The pound rose on Wednesday (15^th December). Since the Office for National Statistics reported that CPI rose to 5.1% in November from 4.2% in October, a figure that beat market expectations of 4.7% and pushed the Pound higher. Due to higher highs in the recent horizontal trend, GBPUSD technical bias is bullish.

The pair is currently trading near 1.32625, and multiple resistance levels can be seen above which may prevent the price from rising further.

Resistance level1: 1.32880

Resistance level2: 1.33100

Resistance level3: 1.33350

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

Support level1: 1.32400

Support level2: 1.32180

Support level3: 1.31900

On Thursday (16^th December), the Bank of England will announce its latest interest rate decision, a rate hike indicates favorable to the pound and therefore it is beneficial for GBPUSD currency pair, and vice versa.

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