29 december 2020...• short term summary: use the top of the trend channel (3735ish) as the pivot....

29 December 2020

229 December,

2020Source Tradingview. The figures stated are as of the 29 December 2020. Past performance is not a reliable indicator of future performance. This report

does not contain and is not to be taken as containing any financial product advice or financial product recommendation

S&P500

• The S&P 500 continues to grapple with the resistance coming from the top of the ascending trend channel currently at 3735ish. A

sustained break/daily close above the trend channel would be an indication the next impulsive leg higher has commenced towards 3800,

with scope towards 4000.

• However, while the S&P500 remains below resistance 3735ish allow for the sideways price action to continue with near term support

viewed 3600.

• Keeping in mind, a break/close below 3600 would be an indication a deeper correction is underway towards 3200.

• Short Term Summary: Use the top of the trend channel (3735ish) as the pivot. Bullish above, mildly negative below.

329 December,

2020Source Tradingview. The figures stated are as of the 29 December 2020. Past performance is not a reliable indicator of future performance. This report

does not contain and is not to be taken as containing any financial product advice or financial product recommendation

AUDUSD

• The AUDUSD continues its correction following the impulsive rally from the November .6991 low to the December .7640 high.

• The correction is likely a Wave iv and while it is possible a Wave iv low is now in place at the recent .7462 low (in the form of a

straight-line reaction) the preference is for a more conventional and tradable corrective pattern to evolve, back towards medium

term support .7450/00.

• A break/close above .7640/50 would be the clearest indication the correction is complete, and the uptrend has resumed. Until then

allow for more corrective/sideways price action to unfold in the coming days.

• Short Term Summary: Once the current correction is complete the uptrend is expected to resume.

429 December,

2020Source Tradingview. The figures stated are as of the 29 December 2020 Past performance is not a reliable indicator of future performance. This report does

not contain and is not to be taken as containing any financial product advice or financial product recommendation

EURUSD

• The EURUSD continues its correction following the impulsive rally from the November 1.1602 low to the December 1.2273 high.

• The correction is likely a Wave iv and while it is possible a Wave iv low is now in place at the recent 1.2129 low (in the form of a

straight-line reaction) the preference is for a more conventional and tradable corrective pattern to evolve, back towards medium

term support 1.2050/00.

• A break/close above 1.2275/85ish would be the clearest indication the correction is complete, and the uptrend has resumed. Until

then allow for more corrective/sideways price action to unfold in the coming days.


529 December, 2020Source Tradingview. The figures stated are as of 29 December 2020. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

NZDUSD

• The NZDUSD continues its correction following the impulsive rally from the November .6589 low to the December .7171 high.

• The correction is likely a Wave iv and while it is possible a Wave iv low is now in place at the recent .7002 low (in the form of a

straight-line reaction) the preference is for a more conventional and tradable corrective pattern to evolve, back towards medium term

support .7000/.6950ish.

• A break/close above .7170/80ish would be the clearest indication the correction is complete, and the uptrend has resumed. Until then

allow for more corrective/sideways price action to unfold in the coming days.



AUDNZD

• The recovery from the December 1.0418 low recently reached our initial target, the resistance from the trend channel at 1.0700ish.

• A sustained break above 1.0700/20 would be an initial indication the next leg higher towards 1.1000/50 is underway.

• Conversely, while AUDNZD remains below the resistance 1.0700/20 area, there is the potential for a pullback towards 1.0500.

• Short Term Summary:. The preference is to reenter longs in AUDNZD in the NY either on a break/close above 1.0720 occur or on a

pullback towards 1.0550/00.


USDJPY

• The jagged downtrend in USDJPY continues, and while USDJPY remains below resistance 104.65/00 (top of trend channel and the 200-

day ma), allow USDJPY to continue lower.

• A break below the recent 102.87 low would warn that the next leg lower towards important weekly support 102.00/100.00 area is

underway.

• Keeping in mind, if USDJPY was to break/close above resistance 104.65/105.00, it would justify a more positive bias in expectation of a

rally towards 107.00/20. Should this occur, please see the long USDJPY trade idea below.

• TRADE IDEA: Buy USDJPY at 105.10 o/s leaving room to add if the break is confirmed by a daily close above 105.10. The stop loss will be

placed at 104.25 and the initial target is a move to 107.00/20.


GBPUSD

• Despite a Brexit deal, GBPUSD has failed to break above the cluster of resistance 1.3500/1.3620ish that includes several highs since June

2018 and picks up the January 2009 low of 1.3503.

• However, should GBPUSD see a sustained break above the recent 1.3625 high, it would open the way for the rally to extend towards

1.4800/1.5000.

• Keeping in mind, should GBP/USD fail to clear resistance 1.3500/1.3620ish and then breaks below uptrend support currently near

1.3200 and the December low, 1.3135 area there is room for the decline to extend towards a band of support 1.2750/1.2675 coming

from the 200-day ma and the September 1.2675 low.

• Short Term Summary: A break/close above last week high 1.3625/35 would warrant a positive bias.


GOLD

• For a second time in recent sessions gold stalled ahead of the trend channel resistance currently $1910 area.

• This and the observation the rally from the November $1765 low to the recent $1907 high has at this point unfolded in three waves

does create some uncertainty to our short term bullish analysis.

• To reinforce the bullish bias, gold needs to break/close above 1910ish without first falling below uptrend support $1870ish and then

the band of support $1850 area.

• Keeping in mind a break/close below $1850ish would warn that a rest of the November $1765 low is underway.

• TRADE IDEA: Long a full weight of gold at an average of $1832.50. The stop loss is raised to $1866. The profit target remains open.


SILVER

• For a second time in recent sessions, silver found sellers overnight near $27.00. However, unlike the pattern in gold, the rally from

the $21.89 double low remains impulsive rather than corrective.

• In this context, providing silver remains above the near-term support $24.90/80ish, expectations remain for a retest of the August

$29.85 high.

• Keeping in mind, should silver break below the support $24.90/80ish it would negate the short-term bullish bias.

• TRADE IDEA: Long silver at $25.36, raise the stop loss to breakeven $25.36. The target will again be left open for now.


BITCOIN

• Following the breakout of the triangle consolidation pattern and above Dec 2017 highs near $20,000, Bitcoin has just about reached

the next upside target of $30,000.

• A potential loss of momentum candle has formed overnight at the 28377 high, an initial sign Bitcoin is on the verge of a pullback.

• Pullbacks towards $24,000 and then $22/20,000 should remain well supported and would be viewed as a buying opportunity.

• Keeping in mind it would take a break/close back below $19,000 to negate the positive bias.

• Short Term Summary: The break/close above 20,000 indicates the next leg higher towards 30,000 has commenced.

• NB: Because of the magnitude of the recent move, I have switched to a log scale chart in line with my Weekly Chart.

1229 December, 2020

DISCLAIMER

DISCLAIMER

TECH-FX TRADING PTY LTD (ACN 617 797 645) is an Authorised Representative (1255203) of Gain Capital Australia Pty Ltd (ACN 141 774 727) which holds an Australian Financial Services Licence (number 345646).

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments. Gain Capital Australia Pty Ltd recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com.au, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. GAIN Capital Australia Pty Ltd (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

TECHFX TRADERS owns copyright of the information and material contained in this presentation/report/webinar. Information may be printed or downloaded for personal use. The information may not otherwise be reproduced and must not be distributed or transmitted to any other person or used in any way without the express approval of TECHFX TRADERS.

http://www.cityindex.com.au/

29 december 2020...• short term summary: use the top of the trend channel (3735ish) as the pivot....

Documents