Asia - Forex Technical Outlook and Review | 20 December 2023
DXY:
The DXY (US Dollar Index) chart currently shows an overall bearish momentum, indicating a potential for price to make a bearish continuation towards the 1st support.
The 1st support level at 101.87 is identified as a multi-swing-low support. Further below, the 2nd support level at 100.67 is noted as a swing-low, further reinforcing its importance as a potential key support level.
To the upside, the 1st resistance level at 102.61 is identified as an overlap resistance that aligns close to the 38.20% Fibonacci retracement level. Higher up, the 2nd resistance level at 103.20 is also marked as an overlap resistance that aligns with a confluence of Fibonacci levels i.e. the 61.80% retracement and the 78.60% projection levels, suggesting a potential barrier for further upside movement.
EUR/USD:
The EUR/USD chart currently exhibits an overall bullish momentum. In this context, there is a potential scenario for price to make a bullish continuation towards the 1st resistance. Additionally, the Relative Strength Indicator (RSI) is also demonstrating a bullish divergence versus price, suggesting a potential for a continued bullish momentum.
The 1st resistance level at 1.1006 is identified as a multi-swing-high resistance. Higher up, the 2nd resistance level at 1.1139 is noted as a swing-high resistance, suggesting a potential barrier for further upside movement.
To the downside, the 1st support level at 1.0878 is identified as an overlap support that aligns close to the 50.00% Fibonacci retracement level. Further below, the 2nd support level at 1.0747 is also marked as an overlap support, further reinforcing its importance as a potential key support level.
GBP/USD:
The GBP/USD chart currently exhibits an overall bullish momentum. In this context, there is a potential scenario for price to make a bullish continuation towards the 1st resistance. Additionally, the Relative Strength Indicator (RSI) is also demonstrating a bullish divergence versus price, suggesting a potential for a continued bullish momentum.
The 1st resistance level at 1.2781 is identified as a multi-swing-high resistance that aligns with the 127.20% Fibonacci extension level. Higher up, the 2nd resistance level at 1.2872 is noted as a pullback resistance that aligns with the 161.80% Fibonacci extension level, suggesting a potential barrier for further upside movement.
To the downside, the 1st support level at 1.2612 is identified as an overlap support that aligns with the 61.80% Fibonacci retracement level. Further below, the 2nd support level at 1.2502 is marked as a swing-low support, further reinforcing its importance as a potential key support level.
USD/JPY:
The USD/JPY chart currently exhibits an overall bullish momentum, indicating a potential for price to make a bullish continuation towards the 1st resistance. Additionally, the Relative Strength Indicator (RSI) is also demonstrating a bullish divergence versus price, suggesting a potential for a continued bullish momentum.
The 1st resistance level at 144.53 is identified as a pullback resistance. Higher up, the 2nd resistance level at 145.32 is also marked as a pullback resistance that aligns with the 78.60% Fibonacci retracement level, suggesting a potential barrier for further upside movement.
To the downside, the 1st support level at 142.46 is identified as an overlap support that aligns with the 61.80% Fibonacci retracement level. Further below, the 2nd support level at 141.50 is noted as a multi-swing-low support, further reinforcing its importance as a key support level.
USD/CAD:
The USD/CAD chart currently exhibits an overall bearish momentum, indicating a potential for a drop towards the 1st support.
The 1st support level at 1.3319 is identified as a pullback support that aligns with the 100.00% Fibonacci projection level. Further below, the 2nd support level at 1.3261 is noted as an overlap support, further reinforcing its importance as a key support level.
To the upside, the 1st resistance level at 1.3403 is identified as a pullback resistance that aligns with the 23.60% Fibonacci retracement level. Higher up, the 2nd resistance level at 1.3486 is also marked as a pullback resistance that aligns with the 50.00% Fibonacci retracement level, suggesting a potential barrier for further upside movement.
AUD/USD:
The AUD/USD chart currently exhibits an overall bullish momentum. In this context, there is a potential scenario for price to make a bullish continuation towards the 1st resistance. However, the Relative Strength Indicator (RSI) is also demonstrating a bearish divergence versus price, suggesting a potential for a bearish reversal.
The 1st resistance level at 0.6811 is identified as a swing-high resistance that aligns with a confluence of Fibonacci levels i.e. the 161.80% extension and the 78.60% projection levels. Higher up, the 2nd resistance level at 0.6846 is also noted as a swing-high resistance, indicating its potential significance as a barrier for further upward movement.
To the downside, the 1st support level at 0.6730 is identified as an overlap support. Further below, the 2nd support level at 0.6670 is also marked as an overlap, further reinforcing its importance as a key support level.
NZD/USD:
The NZD/USD chart currently exhibits an overall bullish momentum. In this context, there is a potential scenario for price to make a bullish continuation towards the 1st resistance. However, the Relative Strength Indicator (RSI) is also demonstrating a bearish divergence versus price, suggesting a potential for a bearish reversal.
The 1st resistance level at 0.6307 is identified as a swing-high resistance that aligns with a confluence of Fibonacci levels i.e. the 161.80% extension and the 78.60% projection levels. Higher up, the 2nd resistance level at 0.6307 is also marked as a swing-high resistance, indicating its potential significance as a barrier for further upward movement.
To the downside, the 1st support level at 0.6250 is identified as an overlap support. Further below, the 2nd support level at 0.6182 is also noted as an overlap support, further reinforcing its importance as a key support level.
