Wednesday 8th December 2021 : Technical Outlook and Review

IC Markets No Comments

DXY:

On the H4 timeframe, prices are on bullish momentum. We see the potential for prices to bounce at 96.241 in line with 61.8% Fibonacci extension and 61.8 Fibonacci retracement and our ascending trendline towards our 1st resistance at 96.473 in line with 78.6% and 78.6% Fibonacci extension. Technical indicators are showing bullish momentum. Alternatively, breaking our 1st resistance will find prices climbing higher towards 96.734 in line with 100% Fibonacci extension.

Areas of consideration:

  • H4 time frame, 1st resistance at 96.473
  • H4 time frame, 1st support at 96.241

XAU/USD (GOLD):

On the H4 chart, prices are on bullish momentum. We foresee a potential bounce from our 1st support at 1781.3 in line with 23.6% Fibonacci retracement towards our 1st resistance at 1795.65 which is an area of Fibonacci confluences. Breaking it will find prices climbing higher toward our 2nd resistance at 1794.64 in line with 127.2% Fibonacci extension.

Areas of consideration:

  • 4h 1st resistance at 1795.65
  • 4h 1st support at 1781.3

GBP/USD

On the H4 chart , price is abiding by a descending trendline and is near the first resistance level of 1.32738 which is also 23.6% Fibonacci retracement. Price can potentially dip to the first support level of 1.31683 which is also the graphical overlap support. Our bearish bias is supported by the ichimoku cloud indicator as price is trading below it.

 Areas of consideration :

  • H4 1st resistance at 1.32738
  • H4 1st support at 1.31683

USD/CHF

In reference to last week’s analysis, price indeed dropped to 1st Support at 0.91733. On the H4 timeframe, we can expect price to drop from 1st Resistance in line with 161.8% Fibonacci projection and 50% Fibonacci retracement toward 1st Support in line with 38.2% Fibonacci retracement. Our bearish bias is further supported by the Ichimoku cloud indicator where price is holding below it. Traders should wait for price to swing higher or lower before entering.

Areas of consideration:

  • Watch 1st Support at 0.92249
  • Watch 1st Resistance at 0.92637

EUR/USD :

On the H4 chart , price is abiding by a descending trendline and at the intermediate support level of 1.12784 which is also 50% Fibonacci retracement level. Price can potentially dip to the 1st support  of 1.11397 which is also 50% Fibonacci retracement and daily support level. Our bearish bias is supported by the ichimoku cloud indicator as price is trading below the clouds.

Areas of consideration :

  • H4 first resistance at 1.13745
  • H4 1st support at 1.11397

 

USD/JPY

On the H4 timeframe, price broke out of the ascending trendline support, signifying a bearish momentum.  We can expect price to drop from 1st Resistance in line with 38.2% Fibonacci retracement to the 1st Support in line with 100% Fibonacci projection and horizontal support. Our bearish bias is further supported by the stochastic indicator where the %K line is at the resistance level.

Areas of consideration:

  • H4 1st resistance level 113.559
  • H4 1st support level 112.740

AUD/USD:

On the H4, price is abiding to the descending trendline resistance, signifying bearish momentum. We can expect price to drop from 1st Resistance in line with 38.2% Fibonacci retracement and 127.2% Fibonacci projection towards 1st Support in line with 78.6% Fibonacci extension. Our bearish bias is further supported by the Ichimoku cloud indicator acting as a resistance.

Areas of consideration:

  • H4 1st resistance level 0.71247
  • H4 1st support level 0.69957

NZD/USD:

On the H4 timeframe, prices are on bearish momentum. We see potential for prices to dip from our 1st resistance at 0.67945 in line with 61.8% Fibonacci extension and 38.2% Fibonacci retracement towards our 1st support at 0.679419 which is a graphical swing low.  If prices break our 1st support, prices can potentially dip further towards our 2nd support at 0.67101 in line with 61.8% Fibonacci extension.

Areas of consideration:

  • H4 time frame, 1st resistance at 0.67808
  • H4 time frame, 1st support at 0.67419

USD/CAD:

On the H4, with price approaching the support of the stochastics indicator, we have a bullish bias that price will rise from 1st support at 1.26373 in line with the graphical overlap support and 61.8% Fibonacci retracement to 1st resistance  at 1.27252 in line with the graphical swing high resistance. Alternatively, we may see price break 1st support structure and head for 2nd support at 1.24975 in line with the horizontal swing low support.

Areas of consideration:

  • H4 time frame, support at 26373
  • H4 time frame, resistance at 1.27252

OIL:

On the H4 timeframe, with price rejecting the ascending trendline of the stochastics indicator and the approaching the horizontal graphical level at 1st resistance at 77.00 in line with two 61.8% Fibonacci retracements , we have a bearish bias that price will drop from 1st resistance to 1st support at 72.21 in line with the horizontal overlap support and 23.6% Fibonacci retracement. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 82.98 in line with the horizontal swing high resistance.

Areas of consideration:

  • H4 time frame, 1st resistance of 77.00
  • H4 time frame, 1st support of 21

Dow Jones Industrial Average:

On the H4, with approaching the resistance of the stochastics indicator and the horizontal graphical level,  we have a bearish bias that price will drop to 1st support at 35503 in line with the horizontal overlap support from 1st resistance at 35863 in line with the 78.6% Fibonacci retracement. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 36062 in line with the horizontal swing high resistance.

  • 4H resistance at 35863
  • 4H support at 35503

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