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08.12.202012:00 Forex Analysis & Reviews: Technical recommendations for EUR/USD and GBP/USD pair on 12/08/20

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EUR / USD

Exchange Rates 08.12.2020 analysis

The slowdown under the level of 1.2170 continues. Thus, the pair is thinking whether the correction should be limited to a slight decline and deceleration, or turned it into a full-fledged correction decline to the first target – the daily Tenkan, which is now located very deeply (1.2031). Most likely, this will affect the following development of the situation.

Exchange Rates 08.12.2020 analysis

The movement in the smaller time frames is executed below the central pivot level, which is currently located at 1.2118. But at the same time, bulls maintain the support of the weekly long-term trend (1.2106). In turn, the bears' main task is to break through the key supports in the same TF and sharply consolidate below (1.2106-18). If this plan works out, the bearish mood will further strengthen.

Today, the supports of the classic pivot levels located at 1.2070 - 1.2031 - 1.1983 serve as bears' intraday targets. On the other hand, returning the central pivot level of the day (1.2118) to the bulls' side will turn the main tasks into updating the high extremes (1.2166-77) and restoring the upward trend, which allows us to return bullish prospects.

GBP / USD

Exchange Rates 08.12.2020 analysis

Based on yesterday's results, we can note that the current confrontation is quite strong. Despite bears' activity, they failed to maintain their positions. Thus, they were forced to return to the monthly cloud (above the level of 1.3350) by the closing of the day. Now, the bearish players are making an attempt to decline to the previously reached targets. The accumulation of important support levels still remains at 1.32 (historical level + daily Kijun + weekly Tenkan).

Exchange Rates 08.12.2020 analysis

In this situation, the advantage in the smaller time frames is determined by being above or below the key level zone, which is currently located in the area of 1.3396-46 (central pivot level + weekly long-term trend). The bears are currently striving to reach a reliable predominance of forces, while being supported by technical indicators. However, yesterday's long lower shadow is undoubtedly a weakening factor, pulling the key levels (1.3396-46).

On the other hand, if players return above the weekly long-term trend (1.3396), today's resistance levels at 1.3469 - 1.3558 - 1.3681 can be noted. Now, bearish prospects can be discussed not only after consolidating below the level of 1.3324, but also after passing the support level of 1.32 in the higher time frames.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classical), Moving Average (120)

Evangelos Poulakis
Analytical expert of InstaForex
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