Technical Market Analysis: Main Signals of the Week (Dec 1–7)

This is a weekly market review based on technical analysis. We identify strong horizontal levels and briefly explain what to expect from the price during the week.

Key Topics

• Euro (EURUSD)
• British Pound (GBPUSD)
• Swiss Franc (USDCHF)
• Japanese Yen (USDJPY)
• Canadian Dollar (USDCAD)
• Australian Dollar (AUDUSD)
• Bitcoin (BTC)
• Ether (ETH)
• Apple Inc (AAPL)
• NVIDIA Corp (NVDA)
• Tesla Inc (TSLA)
• Summary

Euro (EURUSD)

The bearish trend continues. The last broken level was support (1.1577 — 1.1599). The breakout occurred 22 candlesticks ago. Two candlesticks ago, the correction likely ended and a rebound entry point to sell formed; an impulse wave is now developing.

The intermediate target for the downward movement is the support level with boundaries at 1.1491 — 1.1513. If the trend develops successfully, a more distant target will be at the support level with boundaries at 1.1469 — 1.1485.

The potential reward/risk ratio from current prices, when setting targets and managing risks based on daily timeframe levels, could be slightly better than 1:1. For the more distant target, it is around 2:1.

Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 1.1630 — 1.1656. If the market successfully consolidates above this nearest resistance, the trend will reverse to bullish.

British Pound (GBPUSD)

The trend changed to bullish when the resistance level (1.3169 — 1.3199) was broken 3 candlesticks ago. An impulse wave is currently developing. New rebound entry points to buy may appear after a correction forms.

The intermediate target for the upward movement is the resistance level with boundaries at 1.3444 — 1.3471. If the trend develops successfully, a more distant target will be at the resistance level with boundaries at 1.3484 — 1.3490.

Since an impulse wave is developing, entry points from current prices may have a suboptimal reward/risk ratio. More favorable entry points to buy may appear after a correction forms.

Long positions will remain relevant as long as the market stays above the nearest support level with boundaries at 1.3034 — 1.3055. If the market successfully consolidates below this nearest support, the trend will reverse to bearish.

Swiss Franc (USDCHF)

The bearish trend continues. The last broken level was support (0.7944 — 0.7946). The breakout occurred 32 candlesticks ago. On the last closed candlestick, the correction likely ended, forming a rebound entry point to sell; an impulse wave is now developing.

The intermediate target for the downward movement is the support level with boundaries at 0.7876 — 0.7923. If the trend develops successfully, a more distant target will be at the support level with boundaries at 0.7827 — 0.7855.

Since the impulse wave is just beginning to develop, the potential reward/risk ratio from current prices could be favorable.

Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 0.8087 — 0.8101. If the market successfully consolidates above this nearest resistance, the trend will reverse to bullish.

Japanese Yen (USDJPY)

The trend has changed to bearish. The last broken level was support (156.20 — 156.38). The breakout occurred 4 candlesticks ago. On the last closed candlestick, the correction likely ended and formed a rebound entry point to sell; an impulse wave is now developing.

The intermediate target for the downward movement is the support level with boundaries at 153.62 — 154.49. If the trend develops successfully, a more distant target will be at the support level with boundaries at 152.82 — 152.95.

Since the impulse move is just beginning, the potential reward/risk ratio from current prices, when setting targets and managing risks based on daily timeframe levels, could be optimal.

Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 158.23 — 158.55. If the market successfully consolidates above this nearest resistance, the trend will reverse to bullish.

Canadian Dollar (USDCAD)

The bullish trend continues; a corrective wave is developing. The last broken level was resistance (1.4036 — 1.4057). The breakout occurred 7 candlesticks ago. A rebound entry point to buy may form after the current correction is complete.

The intermediate target for the upward movement is the resistance level with boundaries at 1.4108 — 1.4124. If the trend develops successfully, a more distant target will be at the resistance level with boundaries at 1.4388 — 1.4415.

If the correction ends around the current prices, where the support (1.3969 — 1.3987) is located, the reward/risk ratio to the first target could be favorable. Alternative entry points may appear from the last broken level (1.4036 — 1.4057).

Long positions will remain relevant as long as the market stays above the nearest support level with boundaries at 1.3969 — 1.3987. If the market successfully consolidates below this nearest support, the trend will reverse to bearish.

Australian Dollar (AUDUSD)

The bearish trend continues; a corrective wave is developing. The last broken level was support (0.6463 — 0.6484). The breakout occurred 7 candlesticks ago. A rebound entry point to sell may form after the current correction is complete.

The intermediate target for the downward movement is the support level with boundaries at 0.6419 — 0.6439.

If the correction ends with a rebound from the current resistance level (0.6536 — 0.6580), the potential reward/risk ratio to the first target will be acceptable for opening short positions.

Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 0.6536 — 0.6580. If the market successfully consolidates above this nearest resistance, the trend will reverse to bullish.

Bitcoin (BTC)

The bearish trend continues; an impulse wave is developing. The last broken level was support (98990 — 101286). The breakout occurred 17 candlesticks ago.

The intermediate target for the downward movement is the support level with boundaries at 80660 — 84648. If the trend develops successfully, a more distant target will be at the support level with boundaries at 74437 — 76272.

If the correction ends near the resistance level (91285 — 92969), the potential reward/risk ratio (based on the risk/target zones) could be around 2:1.

Rebound entry points to sell may appear after a correction forms. To get a more favorable reward/risk ratio, it makes sense to wait for a rebound from one of the resistance levels, for example, from the nearest resistance with boundaries at 91285 — 92969.

Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 91285 — 92969. If the market successfully consolidates above this nearest resistance, the trend will reverse to bullish.

Ether (ETH)

The bearish trend continues. The last broken level was support (3063 — 3292). The breakout occurred 14 candlesticks ago. Two candlesticks ago, the correction likely ended, forming a rebound entry point to sell; an impulse wave is now developing.

The intermediate target for the downward movement is the support level with boundaries at 2627 — 2766. If the trend develops successfully, a more distant target will be at the support level with boundaries at 2476 — 2508.

The potential reward/risk ratio from current prices, when setting targets and managing risks based on daily timeframe levels, could be slightly better than 1:1. For the more distant target, it is around 2:1.

Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 3032 — 3095. If the market successfully consolidates above this nearest resistance, the trend will reverse to bullish.

Apple Inc (AAPL)

The medium-term trend changed to bullish when the resistance (275.25 — 276.70) was broken. The breakout occurred 3 candlesticks ago. An impulse wave is currently developing. New rebound entry points to buy may appear after a correction forms.

Long positions will remain relevant as long as the market stays above the nearest support level with boundaries at 265.32 — 265.53. If the market successfully consolidates below this nearest support, the trend will reverse to bearish.

NVIDIA Corp (NVDA)

The bearish trend continues. The last broken level was support (179.65 — 181.36). The breakout occurred 5 candlesticks ago. Two candlesticks ago, the correction likely ended, forming a rebound entry point to sell; an impulse wave is now developing.

The intermediate target for the downward movement is the support level with boundaries at 173.13 — 174.48. If the trend develops successfully, a more distant target will be at the support level with boundaries at 168.41 — 170.29.

The potential reward/risk ratio from current prices, when setting targets and managing risks based on daily timeframe levels (based on the risk/target zones), could be 0.5:1. For the more distant target, it is slightly better than 1:1.

Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 181.63 — 182.91. If the market successfully consolidates above this nearest resistance, the trend will reverse to bullish.

Tesla Inc (TSLA)

The trend changed to bullish when the resistance level (408.92 — 423.96) was broken 2 candlesticks ago. An impulse wave is developing. New rebound entry points to buy may appear after a correction forms.

The intermediate target for the upward movement is the resistance level with boundaries at 442.15 — 442.49. If the market successfully consolidates above this resistance, it will open the way for the price to move toward target #2 — the resistance level with boundaries at 462.07 — 467.45.

The potential reward/risk ratio from current prices may not be the most favorable, as the impulse move is already underway. More attractive entry points may appear after a correction forms.

Long positions will remain relevant as long as the market stays above the nearest support level with boundaries at 383.76 — 391.09. If the market successfully consolidates below this nearest support, the trend will reverse to bearish.

Summary

From a medium-term trading perspective, the financial instruments with corrections nearing completion on the Daily chart and/or the most promising potential reward/risk ratios are: EURUSD, GBPUSD, USDCAD, AUDUSD, ETH, BTC. Other financial instruments may also be of interest, but in these markets, rebound signals on the Daily chart will likely appear no earlier than in a week.