The following is weekly EURUSD and EURGBP technical analysis with limit orders for the week of December 12 to 16. See the previous week’s results and new Forex limit orders for this week into December FOMC meeting on Wednesday.
11 December, AtoZForex – Last week was among the few bad weeks we had so far. Our short GBPUSD order from 1.2798 was missed. While the outcome of USDCAD buy limit order from 1.3195 remains to be determined this week.
From the fundamental perspective, the European Central Bank has kept interest rates unchanged but unexpectedly reduced its asset purchases to EUR60 billion per month, from the previous EUR80 billion.
As a result, EURUSD rallied and reached Fibonacci 100% retracement level at 1.086. In turn completing the ongoing correction phase. From that level onward, the downtrend prevailed and the Euro fell to a nearby low at a custom Fibonacci 188% retracement level at 1.052.
With the current bearish bias for the EUR, we have the best risk/reward Forex limit orders for EURUSD and EURGBP currency pairs based on this week’s Forex technical analysis. You should note, however, that with December FMC meeting scheduled on Wednesday, and with other major fundamental data throughout the week, you should be especially careful.
EURUSD technical analysis & limit orders
Over the past couple of weeks, EURUSD has rebounded from the custom Fibonacci 188% retracement level at 1.052 and reached 100% Fibonacci retracement level at 1.086. Completing the initiated correction phase. From that level onward, the downtrend prevailed and the Euro fell back to the nearby low at the custom Fibonacci 188% retracement level.
With strong bearish EURUSD bias in place we could expect the pair to remain trading lower and use bullish rallies as an opportunity to sell from better levels. Hence, a favourable risk/reward limit order can be taken from 1.0585 resistance level. From where we could look to sell EURUSD towards 1.0482, with a stop loss level placed at 1.0623.
In addition, we could look to long EURUSD as the pair trades close to the lows seen in 2015. Using a smaller entry size for this counter trend limit order, we could long EURUSD from the 2015 low and aim towards a psychological 1.05 level.
EURGBP technical analysis & limit orders
Similarly like with EURUSD, we can expect EURGBP to reach lower lows this week as well.
Therefore, we can look to short any EURGBP rallies higher, particularly towards 0.845 resistance level. From where we could target the pair towards 0.8335 Fibonacci 0% retracement level. And possible even further to a psychological 0.8200 area.
Forex limit orders for EURUSD and EURGBP
The following are our three Forex limit orders based on this week’s EURUSD and EURGBP technical analysis:
EURUSD sell limit order @ 1.0585 with SL at 1.0623 and TP at 1.0482.
EURUSD buy limit order @ 1.0475 with SL at 1.0448 and TP at 1.0498.
EURGBP sell limit order @ 0.8450 with SL at 0.85202 and TP at 0.8335.
Having said that, I expect “buy the rumor, sell the fact” phenomenon for the December FOMC meeting. Thus keep your eyes on Analysis with entry and exit levels Forum thread for Forex limit orders throughout this extraordinary trading week.
What is your weekly technical outlook? Share your view in the comments section below.