Daily Technical Analysis December 12th 2023

Introduction: 

Welcome to our daily technical analysis of the financial markets, focusing today on EUR/USD and Crude Oil. Let's dissect the latest news, market trends, and crucial price levels to watch out for.  

1. EUR/USD Analysis: 

News Summary: 

The European Central Bank is unlikely to cut interest rates as quickly as the market expects. Market expectation for rate cut by ECB is too high, the ECB monetary policy is restrictive and lowering interest rates to more neutral level seems reasonable. After initially paying too little attention and reacting late to inflation in 2021, the ECB is now eager to regain lost credibility in the fight against inflation.  

Trend Analysis: 

We can see EUR/USD is hovering below the 48 hours moving average on H4 chart, the MACD double line and energy column has begun to shrink near zero axis. In addition, expectations for a soft landing of US economy next year will prompt the European Central Bank to start cutting interest rates before the FED, it will weaken EUR/USD. The possible tactic is to set sell limit, stop loss is necessary.  

Today's Key Price Levels: 

Key Support Levels: [1.0670] 

Key Resistance Levels: [1.0850] 

Pivot Points [1.0800]

2. Crude Oil Analysis:  

News Summary: 

As the global economic recovery is less than expected, crude oil price has been in the process of decline. In addition, the US has increased oil supply at a record rate for the second consecutive month, further limiting the rise in oil prices. Various oil-producing countries hope to use production cut to increase oil price. Saudi Arabia and Russia extended voluntary production decrease until the first quarter of 2024, and other members began voluntary production cuts in January.  

Trend Analysis: 

We can see crude oil fluctuated at a low level, and the MACD double line and energy column shrank downward near the zero axis. However, a rebound factor to be considered is that the US Department of Energy expressed its intention to replenish strategic oil reserves in the current low oil price environment, supporting area is located at $67. The buy limit can be employed, stop loss is compulsory.   

Today's Key Price Levels: 

Key Support Levels: [68.00] 

Key Resistance Levels: [74.32] 

Pivot Points [70.00]