EURUSD, GBPUSD chart view on 30 December

EURUSD chart analysis

During the Asian session, the euro weakened against the dollar. The euro is currently being exchanged for 1.13220 dollars, weakening the common European currency by 0.19% since the beginning of trading tonight. France is experiencing a jump in COVID-19 infections, with 208,000 reported cases in the last 24 hours, a new national and European record. Italy also broke the record, so the euro came under great pressure again. Portugal has one of the highest vaccination rates against COVID-19 globally, with about 87% of the 10 million population fully vaccinated. Still, the rapidly expanding Omicron variant has caused a recent increase in cases, boosted by increased mass testing.

Bullish scenario:

• We need to continue the current positive consolidation and get out of this triangle.
• Pair must climb above 1.13800 if it wants to continue because it can get support in MA20 and MA50 moving averages in that zone.
• Below we approach the upper trend line, which prevented us from moving into the bullish trend during previous attempts.
• A break above the trend line would boost bullish optimism, and we might see a pair at 1.170000 level to MA200 moving average.

Bearish scenario:

• We need a break below the MA20 moving average and the bottom line of the triangle, and then we go down to test the previous lower low at 1.11860.
• In the continuation, the pair will form a new low this year, and further bearish pressure would increase its influence and direct the pair towards the 1,100,000 level.

GBPUSD chart analysis

During the Asian session, the British pound weakened against the dollar, leaving part of the big gains from yesterday. The UK reported 185,000 new infections yesterday. Post-Brexit tensions over fishing with the EU have had a positive outcome for 2022, pushing the pound higher. British house prices rose 1.0 percent more than expected in December compared to November, concluding the biggest price increase in the whole year since 2006, data from mortgage lender Nationwide showed on Thursday, more than the forecast of 0.5%. The pound is currently exchanged for 1.3490 dollars, which is slightly strengthening the British currency by 0.02% since the beginning of trading tonight.

Bullish scenario:

• We need a further continuation of this positive consolidation, a break above 50.0% Fibonacci levels at 1,39490.
• Pair GBPUSD is still testing 1.35000, and with good bullish momentum, we expect further strengthening of the pound.
• Our next target is 61.8% Fibonacci level on the upper resistance line, 1.35700-1.36000 zone.
• Up there, we can expect the next potential resistance, and the break above us points to 78.6% level, and the MA200 moving average to 1.37000.

Bearish scenario:

• We need a negative consolidation and withdrawal of the GBPUSD pair at 38.2% Fibonacci level at 1.34150.
• Additional support at this level is the MA50 moving average.
• Our next support is at 23.6% Fibonacci level at 1,33150, with the MA20 moving average support.
• If the bearish strengthens, we can expect a further weakening of the pair and a return to the previous support zone around 1.32000.

Market overview

British news

The real estate market in Great Britain could slow down next year, after the great 2021, with the end of the holiday of state taxes and the threat that the Omicron variant of coronavirus poses to the labor market, the Nationwide Building Society announced on Thursday.

According to the group’s monthly survey, the house price index rose 10.4 percent year-on-year in December after increasing 10.0 percent in the previous month. “2021 was the strongest calendar year for rising house prices since 2006,” the Nationwide report said.

U.S. news

A report released on Wednesday by the National Association of Realtors showed an unexpected drop in U.S. home sales in November. The reduction surprised economists, and expectations were that sales of waiting houses would increase by 0.5 percent. The pending home sales index dropped 2.2 percent to 122.4 in November after rising 7.5 percent to 125.2 in October.

The house sale on hold is when the contract was signed but not yet closed. It needs takes four to six weeks to conclude a contracted sale. The unexpected drop came after the pending house sales index reached its highest level last December in the previous month.