18 Dec, 2023
5 minutes
Daily Technical Analysis December 18th 2023
Introduction:
Welcome to our daily technical analysis of the financial markets, focusing today on EUR/USD and AUD/USD. Let's dissect the latest news, market trends, and crucial price levels to watch out for.
1. EUR/USD Analysis:
News Summary:
Eurozone PMI data is likely to bring speculation that the European Central Bank is about to cut interest rate, since the data provide evidence that the euro zone economy will shrink again in the fourth quarter. As the most reliable economic barometer of the euro zone, the services PMI fell by 0.6 to 48.1 in December, lower than market expectations. There is no hope of improvement in the manufacturing PMI.
Trend Analysis:
We can see EUR/USD fell back after failing to break through on H4 chart. At the same time, the MACD double line and energy bar formed dead cross above zero axis. The ECB would not cut interest rates before next summer as underlying price pressures remain strong. Currently, the sell limit can be employed when price rebound, stop loss is compulsory.
Today's Key Price Levels:
Key Support Levels: [1.0800]
Key Resistance Levels: [1.1000]
Pivot Points [1.0970]
2. AUD/USD Analysis:
News Summary:
S&P Global indicates that Australia Composite Purchasing Managers Index rose to 47.4 points in December 2023 from 46.2 points in November. This is the third consecutive month that the index has stayed below the 50-point boom-and-bust line. According to current global economic backdrop, Australia private economy is still under pressure on the entire demand side, including oversea demand. At the same time, although the cost pressure faced by enterprises has eased, product price increases are accelerating.
Trend Analysis:
We can see AUD/USD is consolidating at a periodic high, and price is still running above 48 hours moving average on H4 chart. However, the MACD double line and histogram bar forms top divergence above the zero axis, and there may be a short-term correction. The sell limit could be placed, stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [0.6600]
Key Resistance Levels: [0.6800]
Pivot Points [0.6770]