7 Dec: Forecast: FX: US$/Majors + trade ideas: FXCharts

EURUSD: 1.1792

€/Usd is a little lower having traded a 1.1780/1.1847 range and is currently sitting right on the 100 DMA which may act as a magnate today although the short term momentum indicators hint at lower levels ahead.
1 hour/4 hour indicators:Turning lower		Daily Indicators: Possible topping formation			Weekly Indicators: Neutral
Preferred Strategy: The short term momentum indicators look a little heavy again on Thursday, so selling rallies may be a plan today while not looking for too much ahead of Friday’s NFP figure. I remain neutral on the Euro, although the daily charts, which had been leaning higher appear to be running out of steam and may be hinting of further dollar strength ahead. Look to trade 1.1760/1.1830 today.
Resistance			Support
1.1890	Chart Gap		1.1780	Session low
1.1877	4 Dec high		1.1775	55 DMA
1.1847	Session high		1.1755	(50% of 1.1553/1.1943)
1.1825	Minor		1.1707	(61.8% of 1.1553/1.1943)
1.1800	100 DMA		1.1685	Rising trend support

Economic data highlights will include:

EU GDP, US Jobless Claims, Consumer Credit Change, ECB Draghi Speech

…

USDJPY: 112.29

US$Jpy is a bit lower on Thursday with year-end demand for the Yen negating the US$ strength seen elsewhere.
1 hour/4 hour indicators: Mixed		Daily Indicators: Turning higher			Weekly Indicators: Neutral
Preferred Strategy: As before, a nimble stance is required, with the short term momentum indicators looking a mixed, while the dailies are leaning slightly higher now and buying dips is preferred for the medium term. Look for a range of 111.65/112.80 to cover it today, with further consolidation likely ahead of the US Jobs report, Friday. A break of good support at 111.60 may lead to stops being triggered and lead the dollar back towards 110.85/111.00 although I don’t see it happening today.
Resistance			Support
113.50	Minor		111.98	Session low
113.20	(61.8% of 114.73/110.83)		111.60/65	100 DMA/200 DMA
113.08	4 Dec high		111.35/39	29 Nov low /1 Dec low
112.85	5 Dec high		111.00	Minor
112.62	Session high		110.83	27 Nov low

Economic data highlights will include:

Leading Economic Index, Coincident Index, Foreign Bond/Stocks Investment

…

GBPUSD: 1.3387

Cable fell to a 1 week low of 1.3358 amid Brexit uncertainty, ending the US session at 1.3375 and looking mixed heading into Thursday
1 hour/4 hour indicators: Mixed		Daily Indicators: Possible topping formation. Cable fell to a 1-wk low at 1.3358 amid Brexit uncertainty, ending NY 1.3375			Weekly Indicators: Turning higher?
Preferred Strategy: It looks set to remain choppy for Sterling, with Brexit headlines likely to guide the direction. A neutral stance is required although further dollar strength would seem to point to slightly lower levels for Cable, where targets would be at 1.3350 and then at 1.3300. In the meantime, stand aside.
Resistance			Support
1.3538	4 Dec high		1.3357	Session low
1.3500	Minor		1.3352	(38.2% of 1.3038/1.3549)
1.3480	5 Dec high		1.3325	Minor
1.3443	Session high		1.3295	(50% of 1.3038/1.3549)
1.3400	Minor		1.3280	Minor

…

USDCHF: 0.9900

US$Chf has traded up to 0.9910 and looks set for further gains in the coming session although I think it will be generally fairly steady ahead of tomorrow’s US Jobs data
1 hour/4 hour indicators:Turning higher		Daily Indicators: Turning higher			Weekly Indicators: Neutral
Preferred Strategy: With both the short term and daily momentum indicators looking constructive we could see a run back to 0.9940/50 and possibly to 1.0000+.Buy US$Chf @ 0.9880. SL @ 0.9840, TP @ 0.9980.
Resistance			Support
1.0000	Psychological		0.9854	Session low
0.9975	Minor		0.9835	100 WMA /5 Dec low
0.9946	21 Nov high		0.9805	200 DMA
0.9910	Session high		0.9783	Chart Gap
0.9895	(76.4% of 0.9946/0.9776)		0.9735	1 Dec low /100 DMA

…

AUDUSD: 0.7563

AudUsd is lower on Thursday having traded heavily all day following the volatile price action seen after the release of yesterday’s GDP. Having been unable to regain 0.7600 following the data release, the Aud has traded down to a low of 0.7558. Currently trading just above the lows, the momentum indicators suggest that 0.7550 will be given a nudge, below which would open 0.7530, 0.7515 and possibly the rising trend support at 0.7485.
1 hour/4 hour indicators: Turning lower		Daily Indicators: Up – Turning Neutral?			Weekly Indicators: Turning lower
Preferred Strategy: Trading from the short side continues to be the plan ahead of next week when the Fed is expected to hike rates. I therefore suspect that further upside for the Aud will be limited and selling into rallies is still preferred.Sell AudUsd @ 0.7585. SL @ 0.7610, TP @ 0.7490
Resistance			Support
0.7665	13 Nov high /(23.6% of 0.8102/0.7531)		0.7558	Session low
0.7653	5 Dec high		0.7550	1 Dec low /100 WMA / (61.8% of 0.7159/0.8124)
0.7630	Session high		0.7531	21 Nov low
0.7595	200 HMA		0.7515	(76.4% of 0.7328/0.8124)
0.7575	Minor		0.7500	Minor

Economic data highlights will include:

AIG Services PMI, Trade Balance, China Foreign Exchange Reserves

…

NZDUSD: 0.6876

The Kiwi squeezed up to 0.6916 on Thursday before heading lower once again to finish the session just above the low of 0.6954.
1 hour/4 hour indicators:Neutral – Turning lower?		Daily Indicators: Turning higher			Weekly Indicators: Turning lower
Preferred Strategy: The short term momentum indicators are neutral, possibly turning slightly lower and a cautious stance is required on Thursday. The dailies remain mildly positive but with the weeklies looking heavy, I still prefer to look for levels to sell into, for an eventual return to the downside, where 0.6780/6800 would provide decent support. For today, a range of 0.6900/0.6820 might cover it.
Resistance			Support
0.6945	28 Nov high		0.6869	Session low
0.6933	(23.6% of 0.7434/0.6783)		0.6850	5 Dec low
0.6928	29 Nov high		0.6840	4 Dec low
0.6916	Session high		0.6816	1 Dec low
0.6885	Minor		0.6779	17 Nov low

By Jim Langlands | December 7, 2017