#EURUSD and #GBPUSD #ForexSignal with Analysis (5 December 2023)

Posted by Clara Mellor on 03:14 with No comments

EUR/USD Forex Signal: Bears Prevail as it Flips Key Support Level

The EUR/USD pair also retreated as investors reflected on the hawkish statement by Jerome Powell, the head of the Federal Reserve.

Bearish view

  • Sell the EUR/USD pair and set a take-profit at 1.0735.
  • Add a stop-loss at 1.0875.
  • Timeline: 1-2 days.

Bullish view

  • Set a buy-stop at 1.0830 and a take-profit at 1.0900.
  • Add a stop-loss at 1.0735.

The EUR/USD price has retreated in the past four straight days as the recent euro momentum faded. The pair dropped from November’s high of 1.1015 to a low of 1.0805 as investors reflected on the recent statement by Jerome Powell.

Jerome Powell statement and EU inflation

The EUR/USD pair has been in a strong downtrend after Europe published encouraging consumer inflation data. According to Eurostat, the euro area consumer inflation dropped to 2.4% in November, the lowest level in months.

EUR/USD technical analysis

The EUR/USD price retreated and lost the important resistance point at 1.0823, the lowest swing on November 17th. On the 4H chart, the 50-period and 25-period Exponential Moving Averages (EMA) have made a bearish crossover. It is also nearing the 38.2% Fibonacci Retracement level while the Money Flow Index (MFI) has dropped to the oversold level.

Therefore, the path of the least resistance for the pair is bearish, with the next key reference level being the 50% retracement point at 1.0735. The stop-loss of this trade will be at the 23.6% retracement level at 1.0880.

GBP/USD Forex Signal: Double Top Pattern Forms on the 4H

The GBP/USD pair will have several minor catalysts on Tuesday.

Bearish view

  • Sell the GBP/USD pair and set a take-profit at 1.2500.
  • Add a stop-loss at 1.2750.
  • Timeline: 1-2 days.

Bullish view

  • Set a buy-stop at 1.2635 and a take-profit at 1.2735.
  • Add a stop-loss at 1.2550.

The GBP/USD pair retreated on Monday as the US dollar index (DXY) bounced back. After peaking at 1.2733 last week, the pair has now pulled back to the psychological level of 1.2600. The dollar index, on the other hand, bounced back to $103.7.

Hawkish Fed and banking risks

The GBP/USD pair retreated as investors embraced a risk-off sentiment on Monday. US equities pulled back, with the Dow Jones shedding over 60 points and the S&P 500 falling by 0.70%. The US dollar index also pulled back after falling to a multi-monthly low last week.

GBP/USD technical analysis

The GBP/USD exchange rate has been in a strong uptrend in the past few weeks. Recently, however, it has lost momentum and pulled back slightly. Notably, it has formed a double-top pattern at 1.2733. In technical analysis, this pattern is one of the most accurate bearish signs.

The pair has also retreated below the 50-period and 25-period Exponential Moving Averages (EMA) while the Money Flow Index (MFI) has moved below the neutral point. Therefore, the outlook for the GBP/USD exchange rate is bearish, with the next point to watch being at 1.2500.


TO GET ACCURATE LIVE ACCURATE 2-3 TRADES (Forex/Comex/Stocks) Telegram me: Financial Advisor

BEST FOREX SIGNAL TELEGRAM GROUP
XAUUSD FOREX INDICES ACCOUNT MANAGEMENT

#SaudiArabia #UAE #Qatar #HongKong #Portugal #PortugueseGP #France #forex #commodities #forexSaudiarabia #forexYemen #forexasia #forexJordan #Singapore #UAE #UK #forexsignals #SwingTrading