Intraday Forex Thursday, December 24 (EURUSD, USDJPY, & etc.) Sterling and euro extended gains on Brexit trade deal optimism.
By: Zulbahri Muhammad
Tags: Forex, Stock Market, Brexit, Education, Finance

This observation is made around 5:00 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Asian shares were higher on Thursday ahead of the Christmas break, as global investors cheered a potential Brexit deal and economic recovery prospects, ignoring U.S. President Trump’s threat to not sign the stimulus aid package and concern about a new strain variant of the coronavirus.

Sterling and euro extended gains on the cusp of Brexit trade deal, as both representatives hash out final details. The dollar was on the back foot as President Trump threaten to not approve the long-awaited stimulus bill, while the new cases of COVID-19 is surging.

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[EURUSD]​

The euro strengthened 0.17% to $1.2203 on Thursday over optimism in Brexit deal.

on Thursday over optimism in Brexit deal. The dollar was on the back foot in holiday-thinned trading as hopes for the Brexit agreement that would protect some $1 trillion in annual cross-channel trade from tariffs and quotas sapped demand for the safest assets.

While the dollar moves faltered as President Trump threaten to not approve the long-awaited stimulus bill.

Important Levels to Watch for:​

Resistance line of 1.22825 and 1.23303 .

and . Support line of 1.21279 and 1.20801.

[USDJPY]​

The dollar was flat versus the yen to 103.580 on Thursday.

on Thursday. USD/JPY nearly recovered all their losses after a rally in stocks on Wednesday and today reduced the safe-haven demand for the yen.

The state of the $900 billion aid package that is yet to be passed by President Trump is watched as one of the factors in moving the currency.

Rally in Asian stocks of the day also factored into the tone.

Important Levels to Watch for Today:​

Resistance line of 103.796 and 103.982 .

and . Support line of 103.196 and 103.010.

[USDCHF]​

The dollar flat on Thursday to stay at 0.8876 against the Swiss franc.

against the Swiss franc. Investors weighting to bet either to or against the currency as President Trump threaten to not approve the long-awaited stimulus bill, while the new cases of COVID-19 is surging.

Important Levels to Watch for Today:​

Resistance line of 0.89141 and 0.89388 .

and . Support line of 0.88341 and 0.88094.

[GBPUSD]​

The British pound strengthened 0.46% to $1.35495 in the day after surging 0.9% in the previous session to snap a 3-day losing streak.

in the day after surging 0.9% in the previous session to snap a 3-day losing streak. The potential for a Brexit deal boosted sterling, while France lifted its ban on freight coming from Britain, which it had enacted in response to a more contagious coronavirus variant in Britain.

EU member states reportedly have started to prepare their procedure to put in place a new trade deal with the UK from Jan 1, indicating a deal could be imminent.

The elusive trade agreement will end on Dec 31. If by then there is no agreement to protect around US$1 trillion in annual trade from tariffs and quotas, businesses on both sides would be hit hard.

Important Levels to Watch for Today:​

Resistance line of 1.36085 and 1.36857 .

and . Support line of 1.33588 and 1.32905.