December 20, 2024 at 02:16PM
Summary
📉 Key Break Below 0.8956: The USDCHF dropped below significant resistance levels, including the 100-hour moving average, previous highs, and a trendline support level. Staying below keeps the sellers more in control in the short term. .
💡 Resistance and Support Analysis: A critical swing area (0.8986 to 0.9017) was identified as resistance that held at the highs yesterday and today. That area helped to stall the rise and reverse the short term bias today. On the downside, levels near 0.8913 to 0.8923 serve as short-term support.
🧩 Economic Data Influence: U.S. Core PCE data was weaker than expected, influencing the USDCHF downward movement.
🔄 Seller Control: Sellers maintain momentum while the price stays below 0.8956, with potential targets near the 200-hour moving average.
Insights Based on Numbers
0.8956: This level acts as a pivot; staying below it signals bearish momentum.
0.8913 – 0.8923: Potential support zone for price reversal or consolidation.
Core PCE at 0.1% (versus 0.2% expected): Indicates softer economic conditions, putting pressure on the USD.
For a technical look at the EURUSD, USDJPY and GBPUSD, see the KICKSTART video from earlier today:
EURUSD
📉 Key Levels: Found resistance at 1.0424; critical support at 1.0332 (November low).
🔄 Swing Points: Price hovered around the 50% retracement level at 1.0405 but failed to break above it.
📊 Downside Bias: A break below 1.0332 signals a continuation of the bearish trend, potentially revisiting December 2022 levels.
USDJPY
📈 Resistance Zone: Swing highs between 157.66 and 158.41 were tested.
🔄 Key Pivot: Price fluctuates around 156.74; staying above signals upside momentum, while dropping below suggests a return to 155.88.
🗣️ Market Influence: Verbal intervention by Japanese officials caused mixed momentum, reflecting uncertain market sentiment.
GBPUSD
📉 Recent Drop: Fell after the Bank of England’s dovish decision.
🔄 Swing Levels: Hovered near 1.25237 with potential to break toward 1.25655 if upward momentum builds.
🛑 Downside Risk: A break below 1.2423 could push it to April’s low near 1.23.
This article was written by Greg Michalowski at www.forexlive.com.