EUR/USD, GBP/USD Daily Forex Analysis December 19, 2012

By Marco Hering (FT)
Forex Market Strategist
Euro Session Coach - Fxlivedaytrading.com

Year is ending here as we make new highs for the year and some nice rallies in JPY and USD. The only thing which is somewhat lacking is AUD/USD and NZD/USD . We discussed in the Euro session several Forex Day Trading Strategies and I discussed some key levels to be aware of. We also discussed in our Daily Forex Analysis several key areas to scalp on this pair. Well I hope you have been following us since we have done very well this week and this month!

Let's talk about the  GBP/USD, we have a  weekly trend line around 1.6320. I don’t expect an immediate break through here though. I rather think the large triangle formation will hold and then we have to see which side it will break.

EUR/USD
We managed to break above the  1.3300 level, and if you followed the thread don’t say I did not tell you that is likely to happen if the price gets above 1.3070 again. A break of 1.3070 triggered the bullish scenario and there was just no holding back afterwards. People who followed the trade in our Live Forex Day Trading Room were able to grab 200+ pips on that. I exited my last portion at 1.3300.

We have a large  inverse SHS in play( Shoulder Head Shoulder) in the weekly chart and the pair is also in wave 3 in the weekly chart. While the SHS pattern has a target of 1.40 and the 100% Fibonacci expansion projection is around 1.3800 the pair hit almost the 61.8% FE at 1.3350 level now. In the daily chart we have also another SHS pattern which obviously also broke its neckline. Note that the head of the inverse SHS pattern is the right shoulder in the SHS weekly chart. As I mentioned in our trading room and my daily member commentaries, we are in wave 3 here as well with a target area 1.3330-13350.  The level at 1.3330 is the 100% is wave 3 in the daily chart. We could see the price going much higher here without a decent retrace. That would be wave 4 in the daily chart.  For now we will continue to trade this pair in the Euro session. This concludes my EUR/USD, GBP/USD Daily Forex Analysis December 19, 2012.

I have a video below for you view.

I hope you all have a great Christmas Holiday, I look forward to trading at Fx Live Day Trading next year as our trading room has experienced an expansion lately. Here is our Twitter, You can check out our Holiday Special if you are Interested in joining our Forex Trading Room.