The following is weekly AUDUSD and EURGBP technical analysis with limit orders for the last week of 2016. See our previous week’s results and new Forex limit orders for this week into New Year.
25 October, AtoZForex – Last week the USD extended its gains into the run-up to Christmas. Lack of fundamental data out of the US in the first half of the week and risk-off environment following US Presidential Elections meant that investors could confidently buy the Dollar. Particularly after the reassurance of strong US economy by December Fed rate hike. Better than expected US Final GDP data in the second half of the week only busted the greenback further.
Going into the last week of 2016, we could expect market participants to be in holiday mood. It is possible that we will have low liquidity in the market. And therefore sudden price spikes will be common. Hence, you should adjust your risk exposure and stop loss levels accordingly.
Holiday season is also good time for machine trading. Therefore, indicators old as the markets itself like moving averages tend to work great as dynamic support and resistance levels at this time.
As for our last week’s technical analysis, one of our two Forex limit orders was triggered. The AUDUSD sell limit order from 0.7325 was missed by 12 pips. The downtrend proved too strong and the anticipated bullish correction fell short.
Meanwhile, our second EURUSD buy limit order was triggered on Monday. Trading dangerously close to our stop loss level, the pair rebounded and is now well into positive zone. Weekly doji confirms that the 1.0407 level is strong enough and we can look for further correction or take profit on the spot.
Based on this week’s Forex technical analysis, we have the best risk/reward Forex limit orders for AUDUSD and EURGBP currency pairs.
AUDUSD technical analysis and limit orders
Looking into AUDUSD technical analysis, the underlying trend for the pair remains biased towards the downside.
However, the pair has approached a strong support level at 0.7177 which is previous range low. Because of this and also because it’s holiday season, we can split a typical entry into two orders and look to sell AUDUSD from 0.7200 and 0.7226 levels accordingly.
We should aim back first towards 0.718. And if the trend proved to be strong, further out to 0.7112.
EURGBP technical analysis and limit orders
Let us turn to our second technical analysis for EURGBP. Last week the pair began a bullish correction phase and it doesn’t show any signs to finish this week.
We could look for EURGBP sell opportunities on bullish rallies towards nearby resistance level at 0.8577 and 0.8562. However, most favourable risk/reward Forex limit order would be to sell the pair from 0.862.
Forex limit orders for AUDUSD and EURUSD
The following are our three Forex limit orders based on this week’s AUDUSD and EURGBP technical analysis:
AUDUSD sell limit order @ 0.7200 with SL at 0.7245 and TP at 0.7180 & 0.7112.
AUDUSD sell limit order @ 0.7226 with SL at 0.7252 and TP at 0.7112.
EURGBP sell limit order @ 0.8620 with SL at 0.8662 and TP at 0.8550.
Lastly, keep your eyes on Analysis with entry and exit levels Forum thread for additional Forex limit orders throughout this last week of 2016.
What is your weekly technical outlook? Share your view in the comments section below.