EUR/USD: Technical Analysis and Trading Recommendations_12/20/2021
At the time of publication of this article, the EUR / USD pair is traded near the 1.1270 mark, trying to develop an upward trend, bouncing off the level of monthly lows. Nevertheless, the current growth should be considered so far as corrective with the nearest targets at resistance levels 1.1285 (Fibonacci level 23.6% of the upward correction in the wave of the pair's decline from the level 1.3870, which began in May 2014, to the level of 1.0500), 1.1290 (ЕМА200 on the 1-hour chart), 1.1300 (psychological level). However, new sales of EUR / USD are possible near them, since the main trend of the pair remains downtrend against the background of different directions of monetary policies of the ECB and FRS.
In the alternative scenario and after the breakdown of the resistance level 1.1300, the corrective growth of EUR / USD will continue towards the important resistance level 1.1357 (ЕМА200 on the 4-hour chart and the upper border of the descending channel on the daily chart). But even in case of its breakdown, growth above the resistance level 1.1410 (ЕМА50 on the daily chart) is unlikely to be possible. The negative dynamics of EUR / USD prevails.
In case of a breakdown of the local support level 1.1230, further decline is likely. EUR / USD remains within the descending channels on the daily and weekly charts. A breakdown of the local support level 1.1200 will be a signal for a further decline, first to the 1.1100 level, and then towards the March 2020 lows, fixed near the 1.0700 mark.
Support levels: 1.1230, 1.1200, 1.1170, 1.1100, 1.0900, 1.0800, 1.0700
Resistance levels: 1.1285, 1.1290, 1.1300, 1.1357, 1.1410, 1.1500, 1.1600, 1.1620, 1.1670, 1.1700
Sell Stop 1.1245. Stop-Loss 1.1310. Take-Profit 1.1230, 1.1200, 1.1170, 1.1100, 1.0900, 1.0800, 1.0700
Buy Stop 1.1310. Stop-Loss 1.1245. Take-Profit 1.1357, 1.1410, 1.1500, 1.1600, 1.1620, 1.1670, 1.1700