21^st December 2021 Technical Analysis

EURUSD

On Monday (December 20) EURUSD rose. Due to the rapid increase in Omicron cases, people are increasingly worried about tightening restrictions in Europe. At the same time, the European Central Bank said that the possibility of raising interest rates in 2022 is unlikely. Last Friday, EURUSD fell sharply. However, the decline in US Treasury yields is temporarily restricted. As a result of the upside of the U.S. dollar, EURUSD have corrected on Monday. Due to the lower lows in the recent volatility trend, the technical bias is bearish.

The pair is currently trading near 1.12742, and multiple resistance levels can be seen above which may prevent the price from rising further.

Resistance level1: 1.13000

Resistance level2: 1.13180

Resistance level3: 1.13350

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

Support level1: 1.12650

Support level2: 1.12520

Support level3: 1.12350

This Wednesday (December 22), the United States will release third-quarter GDP growth data. Higher data indicate favourable to the US dollar. Therefore, it is negative for the EURUSD currency pairs, and vice versa.

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

GBPUSD

GBPUSD fell on Monday (December 20). Recently, the large number of newly confirmed covid cases in the UK in a single day has hit a new high. The epidemic situation is severe, and the GBPUSD have fallen to 1.3200. Due to lower lows in the recent downtrend, the technical bias is bearish.

The pair is currently trading near 1.32082, and multiple resistance levels can be seen above which may prevent the price from rising further.

Resistance level1: 1.32550

Resistance level2: 1.32900

Resistance level3: 1.33300

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

Support level1: 1.31910

Support level2: 1.31700

Support level3: 1.31350

On Wednesday (December 22), the United Kingdom will announce the third quarter GDP growth data. The market generally expects that it will be lower than the previous value. Higher data indicate favourable to the pound, so the GBPUSD currency pair is bullish, and vice versa.

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