EUR/USD: Technical Analysis and Trading Recommendations_12/01/2021


Despite yesterday's and Friday's growth, which was caused by a sharp fall in European stock indices, EUR / USD remains in the long-term bear market zone, trading below the key resistance levels 1.1620 (ЕМА200 on the weekly chart), 1.1725 (ЕМА200 on the daily chart), 1.1885 (ЕМА200 on the monthly chart).

Further decline in EUR / USD is most likely. In view of this, short positions for this currency pair remain preferable, and the current corrective growth provides a good opportunity to enter short positions from the current levels, as well as in case of growth to the important short-term resistance level 1.1433 (ЕМА200 on the 4-hour chart and the upper border of the descending channel on the daily graph).

The breakdown of the support levels 1.1298 (ЕМА200 at the 1-hour level), 1.1285 (Fibonacci level 23.6% of the upward correction in the wave of the pair's decline from the level of 1.3870, which began in May 2014, to the level of 1.0500) will be a confirmation signal of the resumption of the downward dynamics of EUR / USD.

In an alternative scenario, the upward correction will continue towards the resistance level 1.1490 (ЕМА50 on the daily chart), from which sales are also possible. However, only a breakdown of the key resistance levels 1.1725, 1.1780 (Fibonacci level 38.2%) will indicate a return of EUR / USD to the bull market.

Support levels: 1.1298, 1.1285, 1.1200, 1.1170

Resistance levels: 1.1433, 1.1490, 1.1620, 1.1680, 1.1700, 1.1725, 1.1780

Trading Recommendations

Sell Stop 1.1280. Stop-Loss 1.1390. Sell ​​Limit 1.1425, 1.1485. Stop-Loss 1.1520. Take-Profit 1.1230, 1.1200, 1.1170, 1.1100, 1.1000

Buy Stop 1.1390. Stop-Loss 1.1250. Take-Profit 1.1433, 1.1490, 1.1620, 1.1680, 1.1700