The Week Before Christmas
TeleTrade-DJ International Consulting Ltd | Dec 21, 2017 09:52
Christmas time is near and the new year as well, and in market this means that markets will be slower and less volatile during the coming weeks.
So, let’s analyse how the majors in forex have been behaving throughout the past year.
Looking at two of those majors in forex market:
· EUR/USD
· GBP/USD
EUR/USD has surprised for the most of retail traders and investors
As we can see on the monthly time frame chart, the price has broken the consolidation zone which it had been stuck in for almost 2 years…
Since the price has broken the resistance level at 1.45, it has been following a strong bullish movement.
Therefore, it may be possible a further bullish movement on EUR/USD.
Also, we can see that on chart there is a candlestick pattern (Bullish engulfing) which can indicate a further bullish momentum.
GBP/USD remains not clear which trend it tends to go.
This pair involves two economies which are not that “stable”.
United Kingdom is facing again the problem of the “Brexit” and even them they don’t know how it might affect the economy after the “Brexit”.
United states which their economy is not that good as well.
Last week the FED increased the interest rates and U.S dollar didn’t appreciate (normally It appreciate in most of the cases).
Besides that, the GBP/USD as EUR/USD has been appreciated this year.
If we look at the weekly time frame chart we can see that the price has been forming higher highs and higher lows.
However, it has been shown some difficulties in breaking above the resistance level at 1.35.
Otherwise, if the price remains above the level of 1.3, in medium / long - term it seems has a potential to reach 1.38 zone.
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