EUR/USD forecast for December 29, 2020

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EUR/USD picks up bids around 1.2220 during the pre-Tokyo Asian trading session on Tuesday. EUR/USD is currently trading well within the recent ranges. In the upside, highs were reached at just above 1.2270 midway through the month, while recent lows were seen at the 1.2170 mark which has acted as support.

EUR/USD posts minor gains while keeping the consolidation moves amid holiday-thinned trading. However, a short-term symmetrical triangle formation established since December 17 is currently holding between 1.2190 and 1.2240, thus restricting the pair's immediate moves.

However, bearish MACD divergence suggests that the pair's rally from November could be running out of steam. The MACD histogram's notable decline in recent days also hints at a fading bullish momentum.

An upside breakout would open the door to monthly highs around 1.2270.

A downside breakout of an ascending trendline will likely make a move to 1.2170 where the major area of support is located.

The material has been provided by InstaForex Company - www.instaforex.com

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