EURUSD, GBPUSD attempt for smaller winnings

Following the chart, on the four-hour time frame, we see that the EURUSD pair encountered resistance at 1.13500. We are now consolidating in the zone 1.13000-1.13500, and we need further support in MA20 and MA50 to continue towards the next bullish resistances on the chart. The main bullish target on this time frame is 1.150000.

Bullish scenario:

• We need positive consolidation and a break above 1.13500. Only then can we expect the pair to continue up.
• The first up resistance is at 1.14000 level, and the next at 1.14500 zone of previous bearish consolidation.
• In zone 1.14750, we encounter the MA200 moving average before visiting the 1.15000 level.

Bearish scenario:

• We need a negative consolidation below 1.13000 and the MA20 moving average.
• A breakout below leads us to the first support at 1.12500 and MA50 moving average.
• If the pair continues to weaken, our next support zone is this year’s minimum, around 1.12000.

GBPUSD chart analysis

For now, the pound is detaching from this year’s low at 1.31941, moving to the current 1.33210. We are currently looking to see if the GBUPSD pair will break above the 1.33500 and MA50 moving averages to strengthen the support zone further and establish a new path to bullish targets.

Bullish scenario:

• We need support at 1.33000, and with positive consolidation to climb above 1.35000 and MA50 moving average.
• After that, we can expect the pair to climb to the resistance zone around 1.34000.
• If we see a further break above the next resistance zone, they are at 1.34500 and 1.35000.

Bearish scenario:

• We need negative consolidation and withdrawal of the pair below 1.33000.
• Then we look at the support in the zone around 1.32500, and if it doesn’t last, we will test this year’s minimum again at 1.31941.

Market overview

House prices in the UK rose faster in November, defying expectations for easing, the results of a survey by the Nationwide Building Society on Wednesday showed.

The house price index rose 10.0 percent year-on-year after rising 9.9 percent in October. Economists forecast growth of 9.3 percent.

Compared to the earlier month, house prices rose 0.9 percent in November after increasing 0.7 percent in October. Economists predicted slower growth of 0.5 percent, and monthly growth was the fastest in the last three months.

The impact of the new ‘Omicron’ variant of the coronavirus in the broader economy remains unclear, said Nationwide chief economist Robert Gardner.

Retail sales in Germany fell more slowly than expected in October, Destatis data reported on Wednesday.

Retail sales fell 0.3 percent on a monthly basis, but slower than the 1.9 percent drop recorded in September. This was the second consecutive decrease and confused the expected growth of 1 percent.

Compared to February 2020, a month before the crisis, retail sales are 3.5 percent higher in real terms.

The head of the Eurogroup of Eurozone finance ministers, Pashal Donohou, is convinced that the continent’s recovery can take place next year, even if the Omicron variant requires new public health measures. “It is very early in terms of the impact of this new variant on our health. I am confident in our ability to sustain a strong recovery next year,” Donohoe said on Wednesday.

The growth of the manufacturing sector in the eurozone almost stabilized in November. After a four-month slowdown compared to the record expansion from June, the final results of the IHS Markit survey showed on Wednesday.

The factory’s purchasing manager index rose slightly to 58.4 in November from 58.3 in the previous month. The flash reading was 58.6, and a reading above 50.0 indicates an expansion.

Production rose sharply in November. A similar trend was observed in the inflow of new orders.