Pullback on the Pound to the 55 day EMA

The GBPUSD is still struggling to break the 55 day EMA to the downside, it is forming what it appears to be a breakout and pullback pattern on that zone. For the pattern to be completed, the price must bounce to the upside. If the pair bounces to the upside, then the 1.2800 level may act as resistance. Above the 1.2800 level, the 1.3000 may also act as resistance. The bullish trend is still in place; therefore, there is a good probability for the GBPUSD to continue going higher. Below the 55 day EMA, its next support level could be the 1.2300 or the 1.2200 level.

Excellent Webinars to end the year

During the month of December, ActivTrades is offering excellent Webinars to sharpen our trading skills and get us ready for the New Year. Malte Kaub, a great professional of the financial markets will be conducting the last two Webinars of the year, all free of cost and online, so that anyone that registers from anywhere in the world will be able to attend. On December 22^nd the topic will be on trading volume and how to adjust to it. On December 29^th, Mr. Kaub will be giving us different tips and advice on how to make the next year a profitable one. To register for the upcoming events, please visit the link below:

https://www.activtrades.com/en/webinars

Don’t miss this great opportunity to learn more from the professionals. 

The USD/CAD visits its 200 day EMA

The 200 day EMA usually acts as a good support or resistance zone, especially when there is a round number level close to it. On the daily chart of the USD/CAD we can see that the 200 day EMA is right on the 1.3200 level and the price of the pair is practically at that same zone. Even though the bearish trend is still in place, the 200 day EMA may act as a support from where the price may try to bounce to the upside. If the pair bounces to the upside, then the 1.3300 level may act as resistance. If the pair breaks below the 1.3200 level, then it may try to go and visit the 1.3100 level from where it may try to stall. Another scenario that may develop is that the pair may consolidate and go sideways oscillating around the 1.3200 zone.

Sugar struggles with the 19.00 level

On the daily chart of the March contract of sugar, we can see that the commodity has had a very good bearish trend during the past few months, but once it got to the 19.00 level, it stalls there and tries to pull back up. Around the 19.00 level we can also see the 200 day EMA, which could have also contributed for the instrument to stall there. Usually, the 200 period EMA acts as a good support or resistance zone. But the bearish trend is still in place and the price of sugar may try to break below the 200 day EMA. If it breaks to the downside, then the 18.00 level or the 17.00 level could act as support. On the other hand, the stochastics are in the over-sold area, indicating that the instrument may be ready for a bullish correction. To the upside, the 20.00 level may act as resistance, followed by the 21.00 level or the 22.57 level.

USD/JPY: Possible trend reversal

The Dollar versus the Yen has been rising steadily, but once it got to the 114.87 zone, it lost its bullish momentum. The pair has already visited the 114.87 level twice, as shown on the daily chart. If the prices bounces from the current levels to the downside, then a double top pattern may develop. The double top pattern is a bearish reversal pattern; therefore, the USD/JPY may change direction to the downside. The MACD indicator is also showing us a possible trend reversal, but it is too early, though to call a trend change. To the downside, the 111.28 level may act as a support along with the 200 day EMA, which is much lower around the 107.00 zone.

EUR/JPY: Bullish trend is still in place

The Euro versus the Yen has had a very good rally as shown on the daily chart. Once it got to the 122.00 zone, it retraces to the downside. The 119.00 zone has been a very good support, where the pair has already bounced to the upside a couple of times. A breakout above the 120.00 level could take the pair to the highs around the 122.00 level. At the 118.00 level we can see the 200 day EMA, blue line, which could contribute to making that zone a good support area. The 117.00 level could also act as a support.

Oil: Possible pullback

On the daily chart of WTI oil we can see that the black gold is stalling its rally momentarily around the 51.60 level. The bullish trend is still in place and oil may try to continue going higher, but since it is over-extended to the upside, the commodity may be due for a retracement or pullback to the downside. The 50.00 level may act as a support, but below that level, the 48.00 and the 46.00 may also act as support. Around the 46.00 level we can see the 200 day EMA, which could contribute to making that level a good support. To the upside, if the rally continues and oil breaks above the 51.60 level, then its next resistance could be the 53.50 level.