Intraday Forex Thursday, December 31 (EURUSD, USDJPY, etc.) Sterling & euro extended gains, while dollar weakened as demand for safe-havens flagging.


Hi everyone. This observation is made around 4:30 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Asian shares entered the final trading day of 2020 by hovering near record highs, as investors stick to a bullish view overall, betting on a strong economic recovery next year, with ongoing rollout of coronavirus vaccines and hopes of bigger fiscal and monetary aids buoyed sentiment.

The dollar fell broadly against many currencies on Thursday. Hit its weakest level in more than 2-years against the euro, sterling, the Australian and the New Zealand dollars, while crashed to the lowest in more than 5-years against the Swiss franc.

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  • The euro steamed ahead to $1.2309 overnight, having hit its highest since April 2018 with a gain of 10% for the year.​
  • On Thursday, the euro stand firm, just below the $1.23 mark at $1.2290.​
  • The pair pushed high on dollar weakness, while Eurozone political uncertainty reduced as the EU-UK sign the Brexit trade deal and as the Eurozone started the vaccine distribution in the week.​
  • The euro also garnered support after the EU and China announced an agreement to open the Chinese market further to the EU. The two-way goods commerce valued at more than 1 billion euros ($1.2 billion) a day.​
  • The pact expands access to the Chinese market for EU investors in industries ranging from cars to telecommunications, while addresses Chinese policies on industrial subsidies, state control of businesses, and forced technology transfers.​
  • The dollar under pressure on month-end and year-end position squaring as investors favoured the riskier currencies.​
Important Levels to Watch for:​
  • Resistance line of 1.23230 and 1.23460.​
  • Support line of 1.22488 and 1.22258.​

  • USD/JPY traded flat at 103.166 on Thursday.​
  • Trade is expected to be thin in Asia with Japan and South Korea on holiday.​
  • Overnight, the pair dropped to a 1-1/2 week low and is just above the 9-1/2-month low from December 17.​
  • Demand of safe haven currencies weakened as risk sentiment improved in the wake of Britain’s trade deal with the EU and on the U.S. President’s decision to pass dollar-negative pandemic stimulus programs.​
Important Levels to Watch for Today:​
  • Resistance line of 103.618 and 103.868.​
  • Support line of 102.809 and 102.560.​

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Merry Christmas and Happy New Year!!​