On Tuesday, the following strong calendar news comes out:
- 9:30 AM London time. EUR, the business activity index in the manufacturing sector (PMI) of Germany (Dec.), expected at 63.3% versus the previous value of 63.3%;
- 9:30 AM London time. GBP, the business activity index in the manufacturing sector (PMI) (Dec.), expected at 58.0% versus the previous value of 58.2%.
EUR / USD pair
Trend analysis (Figure 1)
The price moved up on Friday. While the market will move up on Tuesday, with the first target at 1.2092 near the upper limit of Bollinger. The complex analysis will more accurately determine the price direction.
Fig. 1 (daily chart).
Indicator analysis on the daily schedule (Figure 2).
The system of ADX indicators (Figure 2).
On the last run, the fast line (indicator 5 - white) and the slow line (indicator period 8 - blue) moved up. In this case, the trend should be determined by trend type indicators.
MACD Indicator (period 5/8/13).
The linear part of the MACD indicator.
Fast line (signal) - a line of white color.
The slow line (main line) is the blue line.
The result for the linear part of the MACD indicator is an upward trend.
Histogram of the MACD indicator.
Histogram - columns of black color.
The result of the histogram of the MACD indicator is an upward trend.
Overall: the MACD indicator on the daily chart shows an upward trend.
Middle lines of the EMA.
The daily chart uses the following midlines.
1 middle EMA line - color white (first shadow).
5 the middle line of the EMA - the color is red (the first shadow).
8 middle EMA line - the color is blue (the first shadow and trend).
13 the middle line of the EMA - the color is yellow (trend).
21 middle EMA line - the color is brown (trend).
At the last run 8, the middle EMA line (blue) moved up, positioned above the 13th EMA midline (yellow) - the signal of the top work.
21, the middle EMA line moves upwards, positioned below the 13th EMA midline and strengthening the signals of the top work.
The bottom line of the EMA middle line system based on the daily chart shows an upward trend.
The probability distribution of the indicators are as follows:
-the average EMA lines are 24% up;
-the indicator of the MACD (linear part) - 38% up;
-the MACD indicator (histogram) is 38% higher.
The result of the indicator analysis indicates the price will have an upward trend.
Fig. 2 (daily chart).
Complex analysis:
- Indicator analysis - up;
- Fibonacci levels - neutral;
- volumes - upwards;
- candle analysis - down;
- trend analysis - up;
- Bollinger lines - up;
- Weekly schedule - up.
General conclusion.
On Tuesday, the market will move up with the first target at 1.2092 (upper fractal).
GBP / USD Pair
The price moved up on Friday. While the market could possibly move up on Tuesday. The first stop is expected at 1.3548. The complex analysis will more accurately determine the price direction.
Fig. 1 (daily chart).
Indicator analysis on the daily schedule (Figure 2).
The system of ADX indicators ADX (Figure 2).
On the last run, the fast line (indicator 5 - white) and the slow line (indicator period 8 - blue) moved down. In this case, the trend should be determined by the trend type indicators.
MACD Indicator (period 5/8/13).
The linear part of the MACD indicator.
Fast line (signal) - a line of white color.
The slow line (main line) is the blue line.
The result of the MACD indicator is an upward trend.
Histogram of the MACD indicator.
Histogram - columns of black color.
The result of the histogram of the MACD indicator is an upward trend.
Overall: the MACD indicator on the daily chart shows an upward trend.
Middle lines of the EMA.
The daily chart uses the following midlines.
1 middle EMA line - color white (first shadow).
5 the middle line of the EMA - the color is red (the first shadow).
8 middle EMA line - the color is blue (the first shadow and trend).
13 the middle line of the EMA - the color is yellow (trend).
21 middle EMA line - the color is brown (trend).
At the last run 8, the middle EMA line (blue) moved up, placed above the 13th EMA midline (yellow) - the signal of the top work.
21, the middle EMA line moves upwards, located below the 13th EMA midline and strengthening the signals of the top work.
The bottom line of the EMA is based on the daily chart shows an upward trend.
The probability distribution of the indicators are as follows:
- the average EMA lines are 24% up;
- the indicator of the MACD (linear part) - 38% up;
- the MACD indicator (histogram) is 38% higher.
The result of the indicator analysis indicates the price will have an upward trend.
Fig. 2 (daily chart).
Complex analysis:
- Indicator analysis - up;
- Fibonacci levels - down;
- volumes - upwards;
- candle analysis - down;
- trend analysis - up;
- Bollinger lines - up;
- Weekly schedule - up.
General conclusion:
On Tuesday, the GBP / USD pair is possible to move up. The first target is 1.3548.
* The presented market analysis is informative and does not constitute a guide to the transaction
