TOP #FOREX TRADES TODAY [17TH DECEMBER]

Gold consolidates ahead of the FOMC tomorrow, with market participants eagerly awaiting the outcome of the Federal Open Market Committee (FOMC) meeting scheduled for the following day. In the lead-up to this significant event, gold prices have shown a tendency to stabilize as investors adopt a cautious approach. The lack of trading activity thus far indicates a prevailing uncertainty in the market, as traders are likely holding back on making any substantial moves until they have clearer direction from the FOMC's decisions and statements. The anticipation surrounding potential changes in monetary policy and interest rates is contributing to this consolidation phase, as participants weigh the implications for gold's appeal as a safe-haven asset. The outcome of the FOMC meeting could play a crucial role in determining gold's trajectory in the near term, making this a pivotal moment for both the metal and broader financial markets.

GBP/NZD continues its upward trajectory following the recent COCH [green] Level 2 signal, which indicates a strong likelihood of sustained momentum in the market. This bullish signal suggests that buyers are gaining traction, and the currency pair is poised to reach our target of 1.20905 in the forthcoming hours.

The COCH Level 2 signal is a technical indicator that reflects the underlying strength of the GBP against the NZD, and its green designation implies a favourable market condition for further gains. As traders analyse the current price action, it becomes evident that the upward movement is supported by a combination of factors, including positive economic data from the UK and a potential weakening of the New Zealand dollar.

In the context of this upward movement, it is essential to monitor key levels of support and resistance that may influence the price action. The current bullish trend may attract additional buyers, especially if we witness a breakout above significant resistance levels. Additionally, market sentiment plays a crucial role, and any news or events that could impact the GBP or NZD should be closely watched.

As we approach our target of 1.20905, traders should remain vigilant and consider potential volatility that might arise from economic announcements or geopolitical developments. Overall, the outlook for GBP/NZD appears optimistic, with the potential for further upward movement as momentum continues to build in favour of the British pound.

EUR/CAD is currently exhibiting clear indications of a sustained parabolic trend moving upwards. This upward trajectory suggests that the currency pair is gaining momentum, which could lead to further appreciation in its value. In light of this bullish trend, it is advisable to adjust your stop-loss order to the bottom of the green support line. By doing so, you effectively eliminate any potential risk associated with this position, as the stop-loss will now be positioned at a level that should protect your capital in the event of a market reversal.

The current market dynamics indicate that a significantly larger target price is attainable in the upcoming weeks. Analysts and traders alike are eyeing the level of 1.5740 as a potential target, which represents a considerable upside from current trading levels. This target is not merely speculative; it is grounded in technical analysis and market sentiment that suggest a strong possibility of reaching this level if the current trend continues unabated.

As you monitor the situation, keep an eye on key economic indicators and geopolitical developments that could influence the EUR/CAD exchange rate. Factors such as interest rate decisions by the European Central Bank and the Bank of Canada, along with economic data releases from both regions, could play a vital role in shaping the future trajectory of this currency pair. By staying informed and adjusting your trading strategy accordingly, you can position yourself to capitalize on the anticipated movements in the EUR/CAD market.

Chris

Head Coach & Trader for over 30 years