Friday Technical Analysis Recap: USD/JPY, GOLD, GBP/USD, EUR/USD | Vantage FX

Friday Technical Analysis Recap: USD/JPY, GOLD, GBP/USD, EUR/USD

December 16, 2016

Monday/Tuesday:

Heading into the US Federal Reserve’s interest rate decision, we were watching this key USD/JPY resistance level:

“USD/JPY Daily:
161213_usdjpy_daily
Click on chart to see a larger view.”

With the interest rate hike fully priced in, it was always going to be about the Fed’s expectations for monetary policy heading into 2017. With price at a major resistance level and starting to reject, we were looking to make a play at selling some intra-day weakness.

The hourly chart in Tuesday’s blog above shows the clear risk profile we had set up.

USD/JPY Daily:
161216_usdjpy_daily
Click on chart to see a larger view.

As we now know, the Fed raised rates and most importantly, forecast three more hikes in 2017. Much higher than the market had expected and with this misalignment of expectation came the repricing to the upside and blew our setups away.

Next.

—–

Wednesday:

Wednesday’s blog took a bigger picture view at how far Gold has fallen over the last few months:

“XAU/USD Daily:
161214_xauusd_daily
Click on chart to see a larger view.”

This wasn’t a specific trading setup but more of a post to highlight just how decimated Gold has been and still how far between major higher time frame levels price still is.

XAU/USD Daily:
161216_xauusd_daily
Click on chart to see a larger view.

Again, same story as above where the Fed shocked the market by giving an expectation for three more hikes in 2017 and Gold continued to be smashed as a result.

Still nowhere near those daily swing lows either. Commodities sure do know how to trend!

—–

Thursday:

Thursday’s blog was a continutation of last week’s USD recap post that focused on the fallout from the Fed rate hike in the Forex majors.

“EUR/USD 4 Hourly:
161215_eurusd_4hourly
Click on chart to see a larger view.”

“GBP/USD Daily:
161215_gbpusd_daily
Click on chart to see a larger view.”

With the US Dollar continuing to rip faces off as it pushes higher, Cable and Fiber of course are getting smashed.

EUR/USD 4 Hourly:
161216_eurusd_4hourly
Click on chart to see a larger view.

I’ve featured EUR/USD here because that support level had no chance of holding and we’ve seen some nice follow through in the intraday price action throughout yesterday and today.

There were plenty of sellers on Twitter trading this breakout so congratulations to the @VantageFX traders who got on board!

—–

Enjoy your weekend!

Dane Williams – @VantageFX

Do you see opportunity trading forex? Trade with Australian regulated forex broker, Vantage FX.

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