Intraday technical levels and trading recommendations on EUR/USD for December 19, 2014

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Bearish pressure was applied earlier around 1.2800-1.2840 where the depicted head and shoulders reversal pattern was established.

Daily fixation below 1.2490-1.2500 (the origшт of the previous bullish swing expressed one month ago) extended the bearish targets towards the price level of 1.2250.

Last week, after bears could fixate below 1.2360, the EUR/USD pair has shown bullish recovery again above it due to the lack of bearish pressure below 1.2255.

The price level of 1.2200-1.2250 remains under bearish pressure as long as the bearish spikes established at the price levels of 1.2500 and 1.2565 remain defended by bears.

Risky traders should note that bearish breakout below 1.2250 exposes a potential projection target located around the price level of 1.2100.

Until then, conservative traders should remain considering price zone of 1.2250-1.2220 as an important DEMAND zone for low-risk LONG entries (backside of the previous broken channel as well as the previous WEEKLY low).

The material has been provided by InstaForex Company – www.instaforex.com

Technical analysis of EUR/JPY for December 19, 2014

General overview for 19/12/2014 09:00 CET

December poor liquidity conditions are present on market and the market is not moving at all. The overall wave development is still consolidating inside of the golden channel, and average daily range is still rather narrow for this pair. The price is still testing the larger time frame support at the level of 145.70; and no decision on the future price movement has been made yet. Nevertheless, the bias is still to the upside, as the wave structure is corrective and there is still a good chance, that the impulsive waves to the upside will unfold soon. 

Support/Resistance: 

144.46 – WS2 

144.96 – Intraday Support 

145.70 – Technical Support 

145.86 – WS1 

147.01 – Intraday Resistance 

147.82 – Weekly Pivot 

148.24 – Intraday Resistance 

Trading recommendations: 

The trading levels stay as it was said as yesterday: the key intraday resistance is at the level of 147.02 and traders should consider opening buy stop orders from this level, with TP at the level of 148.22 and tight (15-20 pips) SL. On the other hand, any breakout lower will create an opportunity to open sell stop orders from the level of 1.44.95 with tight SL (15-20 pips) and TP at the level of 144.46.

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The material has been provided by InstaForex Company – www.instaforex.com

Elliott wave analysis of EUR/JPY for December 19 – 2014

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Technical summary:

The expanded flat correction, we have been tracking is still unfolding nicely. We expect resistance at 146.76 will protect the upside for a break below support at 145.59 confirming a decline to 143.81 and maybe even lower to 142.05. Only an unexpected break above 146.76 will cause concern and a break above 147.03 will invalidate the call for one more new low and indicate that the correction from 149.13 ended early.

Trading recommendation:

We are still looking for a buying opportunity and will place a conservative buy-order at 147.05, just in case a premature low is seen. 

The material has been provided by InstaForex Company – www.instaforex.com