In this brief report, we will outline key support and resistance levels for a few currency pairs, Gold spot, Dow Jones index, and Nasdaq index. The levels identified will be valid short-term for this week of December 13th-17th. Moreover, we will trade according to our primary view which will be posted for each market:
USDCAD
EURUSD
EURJPY
XAUUSD
Dow Jones (US30) Index
Nasdaq 100 (NAS100) Index
USDCAD Daily Chart
Major resistance 1.2760-1.2790
Major support: 1.2600 & 1.2450.
Primary trading plan: Intraday short-trade at resistance area for a stretched correction phase down to support at Monthly Pivot 1.2600.
Note: If resistance area is broken this week then $USDCAD will need to explore higher trading levels towards the 1.300 level.
EURUSD Daily Chart Major resistance 1.1380 & 1.1600 Major support: 1.1230 & 1.1000
Primary trading plan: Hold a buy trade against the 1.1230 support for a bounce towards the Monthly Pivot and resistance #1 at 1.1380.
Note: If the support at 1.1230 does not hold on the Daily timeframe then there is a high chance for $EURUSD to drop further towards the next support mark at 1.1000.
EURJPY Daily Chart Major resistance 129.45 & 130.50 Major support: 127.50 - 124.00
Primary trading plan: Waiting for a retest and rejection of resistance at 129.45 for a short confirmation and downward move towards support at 127.50 where we will shift into a buy.
Note: If resistance at 129.45 is broken on the 4H timeframe then we may look for intraday long trades using momentum to target the resistance at 130.50.
XAUUSD Daily Chart Major resistance 1790-1803 Major support: 1767-1753
Primary trading plan: Ideally, Gold price needs to drop as labelled in the chart below, nevertheless, we may see another push-retest of 1803 resistance. Hence, we are looking to buy against 1780 with target at 1803 and then expect a drop to support 1753.
Note: If Gold does not hold 1780 support, we may see an earlier drop towards support area.
US30 4H Chart Major resistance 36,300-36,600 Major support: 35,900-35,550.
Primary trading plan: Dow Jones remains strong in the short-term even though we need to cautiously buy the moves. We are looking for dips to hold, therefore, we will buy support and hold for resistance #1 & #2.
Note: If support #1 at 35,900 does not hold then US30 may have a deeper pullback towards the next support at 35,550 which we will look to buy again. Expect a considerable sell-off if 35,550 is broken on the 1H/4H timeframe.
NAS100 4H Chart Major resistance 16,460-16,750 Major support: 16,280-16,100.
Primary trading plan: Same as with the Dow Jones chart, the Nasdaq looks ready for a strong breakout above resistance at 16,460. We will study the price action on Monday and Tuesday to see whether there will be a BREAK & GO scenario or complete failure.
Note: If NAS100 does not hold support on any dips then expect a push back to the previous structure at 16,100.
And, that's a wrap!
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Until the next time, "Be a Mindful Trader!"
Impulsive Wave Trading Team