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05.12.202310:10 Forex Analysis & Reviews: EUR/USD and GBP/USD: Technical analysis for December 5

EUR/USD

Exchange Rates 05.12.2023 analysis

Higher Timeframes

Bears continued the decline yesterday and are once again struggling for control over the levels of 1.0863 and 1.0823, where monthly and weekly timeframe supports converge. The next accumulation of supports can be noted in the range of 1.0760 – 1.0768 (weekly levels + daily medium-term trend). A shift in preferences and the activity of bullish players will direct the market's attention to resistances, with the nearest ones currently marked at 1.0911 (daily short-term trend) and 1.0960 (final level of the weekly Ichimoku death cross).

Exchange Rates 05.12.2023 analysis

H4 – H1

Having the main advantage on lower timeframes, bears are developing a downward trend, with today's reference points being the target for breaking the H4 cloud (1.0798 – 1.0773) and the supports of classic pivot points (1.0796 – 1.0755 – 1.0706). If the initiative shifts to the bulls and they decide to develop the current upward correction, then after gaining support from the central pivot point of the day (1.0845), the reference points will be R1 (1.0886) and the weekly long-term trend (1.0918). Consolidation above and a reversal of the movement can change the current balance of power, opening up new targets for bullish players.

***

GBP/USD

Exchange Rates 05.12.2023 analysis

Higher Timeframes

The pound has chosen a consolidation strategy. We observe a complete shift in sentiments every day, but the range of movement is not violated. What is needed to break out of the current situation? Bears need to go beyond 1.2588 (monthly short-term trend + weekly medium-term trend + daily short-term trend) and move towards the next targets at 1.2458 (weekly and monthly Fibonacci Kijun). The tasks for bulls at this stage involve breaking through the first target reference of the daily target (1.2738), reinforced by the final level of the weekly Ichimoku death cross (1.2719) and the complete 100% performance of the daily target for breaking the Ichimoku cloud (1.2816).

Exchange Rates 05.12.2023 analysis

H4 – H1

On lower timeframes, bears have solidified below key levels 1.2651 (central pivot point of the day) – 1.2665 (weekly long-term trend), allowing them to now have the main advantage. The development of the decline within the day will lead to testing the supports of classic pivot points (1.2580 – 1.2531 – 1.2460). If there is a change in sentiments, where bulls reclaim key levels (1.2651-65), then attention on lower timeframes will be directed to the resistances of classic pivot points (1.2700 – 1.2771 – 1.2820).

***

The technical analysis of the situation uses:

Higher timeframes - Ichimoku Kinko Hyo (9.26.52) + Fibonacci Kijun levels

Lower timeframes - H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Evangelos Poulakis,
Analytical expert of InstaSpot
© 2007-2024
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