December 12 market commentary and technical levels

About Setyo Wibowo:

Living in East Java, Indonesia and holding International Relations degree, Setyo Wibowo began his forex trading career by joining Fortune Channel Investment in 2000 as a market analyst, while learning to trade forex independently on his own. Driven by his desire to share his trading experiences and ideas, Setyo joined the FX Instructor team in 2008. Setyo Wibowo is now living in Mojokerto, East Java, Indonesia.

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Fri, 12th of December, 2008
By Setyo Wibowo (analyst@fxinstructor.com)

EURUSD Outlook
As I had expected yesterday, the EURUSD made another bullish momentum. The pair hit my long target at 1.3217 and 1.3288, even further topped at 1.3403. The bias remains to the upside. From longer term view the pair should now ready to test 1.3730 area (38.2% Fibonacci retracement from 1.6038 to 1.2330). However CCI already in overbought area both on 4h and daily chart so watch out for a downside pullback testing 1.3280 and 1.3190 support area. Immediate resistance is seen at 1.3403 (yesterday’s high) followed by 1.3530.

EURUSD Daily Supports and Resistances:

• S1= 1.3097
• S2= 1.2848
• S3= 1.2695
• R1= 1.3499
• R2= 1.3652
• R3= 1.3901

GBPUSD Outlook
The GBPUSD also made another bullish momentum yesterday. The pair hit my long target at 1.5050 even further topped at 1.5080. We have an ascending triangle pattern on hourly chart that suggests a potential bullish continuation especially if the triangle break to the upside and should give us another long trade opportunities. However CCI just cross the 100 line down on hourly chart so watch out for a potential downside pullback testing 1.5000 and 1.4925 support area. Initial resistance is seen at 1.5080 (yesterday’s high). A break above this  level could also be considered as a break to the triangle pattern and should trigger further bullish momentum towards 1.5250 as the next bullish target.

GBPUSD Daily Supports and Resistances:

• S1= 1.4847
• S2= 1.4655
• S3= 1.4539
• R1= 1.5155
• R2= 1.5271
• R3= 1.5463

USDJPY Outlook
The USDJPY had a bearish momentum yesterday. The pair bottomed at 91.16 and closed at 91.47. The bias remains to the downside in nearest term but neutral in longer term. CCI just reject the -100 line and heading up on hourly chart suggesting a potential upside pullback testing 91.93 and 92.50 resistance levels. Immediate support is seen at 91.16 (yesterday’s low) followed by 90.92.

USDJPY Daily Supports and Resistances:

• S1= 90.79
• S2= 90.12
• S3= 89.08
• R1= 92.50
• R2= 93.54
• R3= 94.21

USDCHF Outlook
The USDCHF continued it’s bearish momentum yesterday. The pair hit my short target at 1.1880 even further bottomed at 1.1789. The bias remains to the downside. The key level at this phase is 1.1760 support (23.6% Fibonacci retracement from 1.0011 to 1.2296). A break below that level could trigger further bearish scenario towards 1.1425. However CCI already in oversold area and heading up on 4h chart so watch out for an upside pullback testing 1.1873 and 1.1945 resistance area.

USDCHF Daily Supports and Resistances:

• S1= 1.1756
• S2= 1.1668
• S3= 1.1547
• R1= 1.1965
• R2= 1.2086
• R3= 1.2174

Have a great weekend!