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Today's Forex Signals: Technical Analysis, December 7, 2023

  • Oil prices slump to five-month lows, heading for significant annual drop.

  • Brent crude futures down over 20% since late September, now at $74.64 a barrel.

  • Brent crude's decline beneficial for inflation, bonds, and potential 2024 rate cuts.

  • U.S. weekly job claims to influence markets. 1.30 PM GMT

  • U.S. labour costs decrease, signaling economic slowdown.

  • Global equities down, impacted by weak oil prices and China's fiscal health concerns.

  • The dollar index steadies after reaching a three-week high.

  • European Central Bank expected to cut rates in 2024, with markets pricing in reductions.

  • Gold prices extend gains, while Bitcoin trades just below $44,000.


DXY Dollar Index, A financial chart depicting the with technical indicators including candlesticks, Bollinger Bands, Ichimoku Cloud, and volume bars. The chart also features an RSI indicator below, signalling recent market volatility.
Dollar Index reaching a three-week high.


Today's Forex Signals


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Intraday Forex Signal: XAUUSD


📈 Trade Direction: BULLISH


Gold has maintained a strong position above its pivot point of $2,026.777. The momentum appears to be on the upside, with the currency aiming for the first resistance level at $2,035.353.


📊 Trade Probability: 70%


The trade probability is relatively high, given the current market dynamics and the bullish sentiment observed in the charts.


📉 Yesterday's Trend:

The trend for gold was bullish, continuing its climb from the previous sessions.


📍 Pivot Point:

The pivot point stands at $2,026.777, which gold is trading above, indicating bullish momentum.


Indicators Analysis:

  • Volatility: Increasing, as suggested by the widening Bollinger Bands on the daily chart.

  • Moving Average (MA): Gold is trading above its Moving Average, signaling bullish conditions.

  • Ichimoku: The price is above the Ichimoku cloud, indicating potential for further upward movement.

  • RSI: The RSI is approaching overbought territory, caution is advised as it may indicate a pullback soon.

  • Bollinger Bands: The price has broken above the upper band, showing strong upward momentum but also signaling possible overextension.

🎯 Targets for Taking Profits:

  • Buy: Aim for targets at:

    • 1st Resistance level: $2,035.353

    • 2nd Resistance level: $2,043.837

    • 3rd Resistance level: $2,052.413


❌ Stop Loss Guidelines:

  • Buy: Set the stop loss just below the current 1st support level at $2,018.293 to minimize potential losses.

Suggestion:

Considering the bullish trend and the indicators, an actionable trade recommendation is to go long (buy) on XAUUSD, setting take profit targets at the identified resistance levels, with a stop loss just below the 1st support to protect the trade. Keep an eye on the RSI and Bollinger Bands for signs of overextension and potential pullbacks.


Intraday Forex Signal: WTI (Crude Oil)


📈 Trade Direction: BEARISH

The WTI crude oil is exhibiting a bearish sentiment, currently trading near the pivot point of $69.93. The recent price action suggests a downward trend with potential to test the first support level at $68.5600.


📊 Trade Probability: 65%


The likelihood of a bearish trend continuation is significant, taking into account the recent price behavior and technical indicators.


📉 Yesterday's Trend:

The trend for WTI was bearish, indicating a continuation of the downward momentum from previous trading sessions.


📍 Pivot Point:

The pivot point is at $69.93, with the price wavering around this level, suggesting indecisiveness but with a bearish bias.


Indicators Analysis:

  • Volatility: Increasing, as the Bollinger Bands are expanding, indicating a potential for larger price movements.

  • Moving Average (MA): WTI is trading below its Moving Average, which typically indicates bearish conditions.

  • Ichimoku: The price is below the Ichimoku cloud, reinforcing the bearish outlook.

  • RSI: The RSI is not in the oversold territory, suggesting that there might be more room for downward movement.

  • Bollinger Bands: Price is near the lower band, showing bearish momentum but beware of potential bounces as it could indicate oversold conditions.

🎯 Targets for Taking Profits:

  • Sell: Set targets at:

    • 1st Support level: $68.5600

    • 2nd Support level: $67.74

    • 3rd Support level: $66.37


❌ Stop Loss Guidelines:

  • Sell: Place the stop loss just above the current 1st resistance level at $70.75 to protect the trade from a sudden reversal.

Suggestion:

The analysis suggests a short (sell) position on WTI, with take profit levels set at the subsequent support levels. The stop loss should be placed just above the 1st resistance to mitigate risk.


Monitor the indicators, especially the Bollinger Bands and RSI, for potential reversals or pauses in the downward trend.


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Intraday Forex Signal: EURUSD (Euro / U.S. Dollar)


📈 Trade Direction: BULLISH

The EURUSD pair is showing signs of an uptrend, currently trading just below its pivot point of 1.078. The currency has potential to target the first resistance level at 1.079, indicating a bullish inclination.


📊 Trade Probability: 65%

There's a reasonable chance of the bullish momentum sustaining, given the current chart patterns and technical indicators.


📉 Yesterday's Trend:

The EURUSD pair displayed an upward movement, continuing its momentum from the previous day.


📍 Pivot Point:

The pivot point for EURUSD is set at 1.078, with the price action surrounding this level suggesting a possible ascent.


Indicators Analysis:

  • Volatility: It appears stable with a slight increase, as indicated by the Bollinger Bands.

  • Moving Average (MA): EURUSD is trading near its Moving Average, suggesting equilibrium but with a bullish bias.

  • Ichimoku: The price is hovering near the Ichimoku cloud, which may act as support for further upward movement.

  • RSI: The RSI is in a neutral position, neither overbought nor oversold, allowing room for upward movement.

  • Bollinger Bands: The price is within the upper half of the bands, leaning towards bullish sentiment but watch for potential resistance at the upper band.

🎯 Targets for Taking Profits:

  • Buy: Aim for targets at:

    • 1st Resistance level: 1.079

    • 2nd Resistance level: 1.0825

    • 3rd Resistance level: 1.0844


❌ Stop Loss Guidelines:

  • Buy: Set the stop loss just below the current 1st support level at 1.0746 to limit potential losses.

Suggestion:

The trade suggestion would be to go long (buy) on EURUSD, with profit-taking targets set at the resistance levels identified.


A stop loss should be placed below the first support level to safeguard the trade. It’s important to monitor the RSI and Bollinger Bands closely for signs of reversal or breaking resistance which may lead to a shift in trade dynamics.


Intraday Forex Signal: GBPUSD (British Pound / U.S. Dollar)


📈 Trade Direction: BULLISH

GBPUSD is currently trending near the pivot point of 1.2575. Given the recent price action, the pair has the potential to ascend towards the first resistance level at 1.2599.


📊 Trade Probability: 60%

The bullish probability is moderate, considering the current position of the price relative to the pivot point and technical indicators.


📉 Yesterday's Trend:

The trend for GBPUSD was predominantly bullish, indicating a possible continuation of the upward trend.


📍 Pivot Point:

The pivot point is 1.2575, and the pair is trading close to this level, indicating a possible trend continuation or reversal.


Indicators Analysis:

  • Volatility: Appears to be moderate as per the current width of the Bollinger Bands.

  • Moving Average (MA): The pair is trading around its Moving Average, suggesting a potential shift towards bullish momentum.

  • Ichimoku: GBPUSD is near the Ichimoku cloud, which could provide support for an upward move.

  • RSI: The RSI is in neutral territory, neither overbought nor oversold, suggesting there is room for price movement in either direction.

  • Bollinger Bands: The price is operating in the upper region of the bands, indicating bullish pressure.

🎯 Targets for Taking Profits:

  • Buy: Consider the following targets for taking profits:

    • 1st Resistance level: 1.2599

    • 2nd Resistance level: 1.2639

    • 3rd Resistance level: 1.2663


❌ Stop Loss Guidelines:

  • Buy: Place a stop loss below the first support level at 1.2535 to limit potential downside risk.

Suggestion:

The current signals suggest entering a long (buy) position on GBPUSD, setting take profit levels at the mentioned resistance points.


A stop loss should be positioned below the first support level to manage risk effectively. As always, keep an eye on the RSI and the position of the price relative to the Bollinger Bands for any signs of reversal or continued bullish momentum.



Intraday Forex Signal: USDJPY


📈 Trade Direction: BEARISH

USDJPY is showing a downward trend as it trades below the pivot point of 147.23. The pair is currently leaning towards the first support level at 146.9667, suggesting a bearish sentiment.


📊 Trade Probability: 65%

The probability of the bearish trend persisting is moderately high, as indicated by the recent price movements and technical indicators.


📉 Yesterday's Trend:

The trend for USDJPY was bearish, suggesting the possibility of a continuation of this trend.


📍 Pivot Point:

The pivot point at 147.23 serves as a threshold for determining the bearish trend, with the price below this level indicating bearish momentum.


Indicators Analysis:

  • Volatility: Appears to be increasing, with the Bollinger Bands widening, signaling potential for strong price movements.

  • Moving Average (MA): The pair is trading below the Moving Average, supporting the bearish outlook.

  • Ichimoku: The price is below the Ichimoku cloud, indicative of a bearish trend.

  • RSI: The RSI is trending downwards but not yet in oversold territory, suggesting there may be room for further decline.

  • Bollinger Bands: The price is near the lower band, which could indicate a continuation of the downward trend.

🎯 Targets for Taking Profits:

  • Sell: Set targets at:

    • 1st Support level: 146.9667

    • 2nd Support level: 146.63

    • 3rd Support level: 146.37


❌ Stop Loss Guidelines:

  • Sell: Establish the stop loss just above the pivot point at 147.23 to limit potential losses in case of a trend reversal.

Suggestion:

The current analysis recommends a short (sell) position on USDJPY, with the aim of taking profits at the identified support levels. A stop loss should be placed above the pivot point as a risk management strategy.


Monitor the RSI and the Bollinger Bands closely for any signs of a trend reversal or continued bearish momentum.


Intraday Forex Signal: USDCHF


📈 Trade Direction: BEARISH


USDCHF is currently showing a bearish trend, trading just below the pivot point of 0.8746. The movement indicates potential targeting of the first support level at 0.8730.


📊 Trade Probability: 60%

The bearish trend has a moderate probability given the current market indicators and price position.


📉 Yesterday's Trend:

The pair followed a downtrend, suggesting that the bearish momentum could continue.


📍 Pivot Point:

The pivot point is at 0.8746, with the price currently below this mark, which typically suggests bearish potential.


Indicators Analysis:

  • Volatility: The volatility is moderate with the Bollinger Bands showing a steady width.

  • Moving Average (MA): The pair is trading below its Moving Average, indicating a bearish bias.

  • Ichimoku: The price is below the Ichimoku cloud, which is typically a bearish signal.

  • RSI: The RSI is not in the oversold territory, suggesting that there may be more room to the downside.

  • Bollinger Bands: The price is near the lower Bollinger Band, reinforcing the bearish momentum.

🎯 Targets for Taking Profits:

  • Sell: Consider setting profit targets at:

    • 1st Support level: 0.8730

    • 2nd Support level: 0.8714

    • 3rd Support level: 0.8698


❌ Stop Loss Guidelines:

  • Sell: A stop loss could be placed just above the pivot point at 0.8746 to mitigate risk.

Suggestion:

Based on the indicators, a sell (short) position is suggested for USDCHF, aiming for the specified support levels as profit targets. The stop loss should be set just above the pivot point to manage potential losses.


It is important to monitor the RSI and Bollinger Bands for signs of a possible reversal or continuation of the downtrend.



Intraday Forex Signal: NZDUSD


📈 Trade Direction: BULLISH


The NZDUSD pair is showing bullish momentum, currently trading above the pivot point of 0.6148. The currency aims for the first resistance level at 0.6169.


📊 Trade Probability: 65%

The probability of the bullish trend continuing is quite strong based on current market conditions and technical indicators.


📉 Yesterday's Trend:

The NZDUSD pair was exhibiting a bullish trend yesterday, which seems to be continuing.


📍 Pivot Point:

The pivot point for the day is at 0.6148, and since the price is above this level, it suggests a bullish outlook.

Indicators Analysis:

  • Volatility: There is moderate volatility in the market, as indicated by the Bollinger Bands.

  • Moving Average (MA): The pair is trading above the Moving Average, confirming the bullish trend.

  • Ichimoku: The price is above the Ichimoku cloud, suggesting bullish momentum.

  • RSI: The RSI is in the upper range but not yet in the overbought territory, which means there might be room for further upward movement.

  • Bollinger Bands: The price is near the upper Bollinger Band, indicating bullish pressure.

🎯 Targets for Taking Profits:

  • Buy: Set the profit-taking targets at:

    • 1st Resistance level: 0.6169

    • 2nd Resistance level: 0.6198

    • 3rd Resistance level: 0.6219


❌ Stop Loss Guidelines:

  • Buy: Place a stop loss just below the first support level at 0.6119 to minimize potential losses.

Suggestion:

Given the current market situation, a long (buy) position is suggested for NZDUSD, targeting the resistance levels for taking profits.

A stop loss should be placed below the first support to safeguard the trade.


Continuously monitor the RSI and the proximity of the price to the upper Bollinger Band, as these could indicate potential pullbacks or a strengthening trend.



Intraday Forex Signal for AUD/USD


📈 Trade Direction: BULLISH

The AUDUSD pair is showing signs of an uptrend, trading just below the pivot point of 0.6564. The current market behavior suggests an approach towards the first resistance level at 0.6581.


📊 Trade Probability: 60%

The probability for a bullish trend continuation is moderate, considering the latest price action and the technical indicators.


📉 Yesterday's Trend:

The trend for AUDUSD was bullish yesterday, with a likelihood of continuing this momentum today.


📍 Pivot Point:

The pivot point is set at 0.6564, and the price action near this point often indicates bullish intentions when the price is above it.


Indicators Analysis:

  • Volatility: The volatility is moderate as seen by the Bollinger Bands, with potential for price movement.

  • Moving Average (MA): The pair is trading close to the Moving Average, indicating a possible trend continuation.

  • Ichimoku: Price is near the Ichimoku cloud, which could suggest potential support for a bullish move.

  • RSI: The RSI is neutral, indicating there's still room for an upward movement.

  • Bollinger Bands: The price is near the upper band, which suggests bullish momentum.

🎯 Targets for Taking Profits:

  • Buy: Set your targets at:

    • 1st Resistance level: 0.6581

    • 2nd Resistance level: 0.6615

    • 3rd Resistance level: 0.6632


❌ Stop Loss Guidelines:

  • Buy: Place a stop loss just below the first support level at 0.6530 to manage risk.

Suggestion:

The indicators suggest that a long (buy) position could be considered for AUDUSD, targeting the mentioned resistance levels for profit-taking.


A stop loss should be strategically placed below the first support level. Continuous monitoring of the RSI and Bollinger Bands is recommended to gauge the strength of the trend and to identify potential reversals.



Intraday Forex Signal for USD/CAD


📈 Trade Direction: BULLISH

The USDCAD pair is currently trading near the pivot point of 1.3581 and showing signs of a bullish trend, aiming towards the first resistance level at 1.3611.


📊 Trade Probability: 65%

The bullish trend has a strong probability given the current indicators and market dynamics.


📉 Yesterday's Trend:

USDCAD showed a bullish trend in the previous session, which may continue into today.


📍 Pivot Point:

The pivot point at 1.3581 acts as a key level for the trend direction; since the price is near this point, it suggests a potential for an upward movement.


Indicators Analysis:

  • Volatility: The market is showing moderate volatility, with the Bollinger Bands at a standard width.

  • Moving Average (MA): The pair is trading near the Moving Average, which may indicate a tendency to follow the trend.

  • Ichimoku: The price is near the Ichimoku cloud, suggesting potential support for the bullish trend.

  • RSI: The RSI is neutral, suggesting that there is room for an upward move without being overbought.

  • Bollinger Bands: The price is approaching the upper band, which often signals bullish momentum.

🎯 Targets for Taking Profits:

  • Buy: Set profit targets at:

    • 1st Resistance level: 1.3611

    • 2nd Resistance level: 1.3630

    • 3rd Resistance level: 1.3660


❌ Stop Loss Guidelines:

  • Buy: A stop loss could be placed just below the first support level at 1.3562 to protect the trade from a downward reversal.

Suggestion:

Based on the analysis, a long (buy) position is suggested for USDCAD, targeting the resistance levels mentioned above.


The stop loss should be set below the first support to mitigate potential losses. It's advisable to monitor the RSI and the upper Bollinger Band for signs of a continued bullish trend or potential price retraction.



Intraday Forex Signal for EUR/GBP


📈 Trade Direction: BEARISH

EURGBP is showing signs of a bearish trend as it trades below the pivot point of 0.8568. The pair is likely to test the first support level at 0.8557.


📊 Trade Probability: 65%

The likelihood of the bearish trend continuing is relatively high, given the current technical indicators.


📉 Yesterday's Trend:

The EURGBP pair was following a bearish trend yesterday, and this downtrend appears to be continuing into the current session.


📍 Pivot Point:

The pivot point at 0.8568 is a key level; since the pair is trading below it, it suggests that the bearish sentiment is prevailing.


Indicators Analysis:

  • Volatility: The volatility is moderate, with the Bollinger Bands showing room for price movement.

  • Moving Average (MA): The pair is trading below its Moving Average, indicating a bearish trend.

  • Ichimoku: The price is below the Ichimoku cloud, which typically signals bearish momentum.

  • RSI: The RSI is trending downwards, pointing to increasing bearish momentum.

  • Bollinger Bands: The price is closer to the lower band, reinforcing the bearish movement.

🎯 Targets for Taking Profits:

  • Sell: Set your targets at:

    • 1st Support level: 0.8557

    • 2nd Support level: 0.8543

    • 3rd Support level: 0.8532


❌ Stop Loss Guidelines:

  • Sell: Place a stop loss slightly above the pivot point at 0.8568 to limit potential losses should the market reverse.

Suggestion:

Based on the current indicators, a short (sell) position is suggested for EURGBP, targeting the support levels for profit-taking. A stop loss should be set just above the pivot point to manage the risk.


As always, it's important to monitor the RSI and Bollinger Bands for any signs of a trend reversal or further confirmation of the bearish momentum.

 

Disclaimer: These trading signals is based on the current chart and market conditions. Always conduct your own analysis and consider risk management strategies before entering any trade. Markets are dynamic, and conditions can change rapidly.



As with all investments, your capital is at risk. Investments can fall and rise and you may get back less than you invested.



The information provided does not constitute, in any way, a solicitation or inducement to buy or sell securities and similar products.



Forex signals ,comments and analysis reflect the views of CHAMP PROFIT at any given time and are subject to change at any time. ©2023 by Champ Profit.



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