Daily Technical Analysis – 22 Dec, 2016

Our preference: long positions above 1.0430 with targets at 1.0480 & 1.0510 in extension.

Alternative scenario: below 1.0430 look for further downside with 1.0410 & 1.0395 as targets.

Comment: the RSI is bullish and calls for further upside.

Our preference: short positions below 1.2370 with targets at 1.2295 & 1.2270 in extension.

Alternative scenario: above 1.2370 look for further upside with 1.2390 & 1.2430 as targets.

Comment: the RSI is bearish and calls for further downside. The pair validated a Symmetrical Triangle: a bearish continuation pattern calling for a decline towards 1.227.

Our preference: short positions below 1.0270 with targets at 1.0215 & 1.0185 in extension.

Alternative scenario: above 1.0270 look for further upside with 1.0300 & 1.0320 as targets.

Comment: as long as 1.0270 is resistance, look for choppy price action with a bearish bias.

Our preference: long positions above 117.40 with targets at 117.85 & 118.20 in extension.

Alternative scenario: below 117.40 look for further downside with 117.10 & 116.90 as targets.

Comment: a support base at 117.40 has formed and has allowed for a temporary stabilisation.