Technical analysis of EUR/USD for December 24, 2020


Overview :

  • Key : Pressure of holiday trading.
  • Zone : Europ.
  • Pair : EUR/USD.
  • Pivot : 1.2185.

Short-term technical outlook :

  • Time frame : M30.

From a technical sight, the pair, so far, has managed to defend the daily pivot point, currently near the 1.2185 area. This is closely followed by the 1.2185 - 1.2164 congestion zone,

Due to the upcoming holidays (24 and 25 of December 2020), the trading working hours of many major financial centers was changed, which affected the trading of the EUR/USD pair notably, because the market was not stable and the trend was not clear.

Consequently, the market will probably start showing the signs of tight sideways range on December 24, and 25 of 2020. Thus, the EUR/USD pair will be restricted by the levels of 1.2164 and 1.2317. So it is of the foresight to pay attention to this area.

Therefore, try to buy at a lower price around the weekly pivot point at the price of 1.2185 with a first target of 1.2242 and it willl climb towards 1.2273.

On four-hour chart, the EUR/USD pair is continuing in a bullish market from the supports of 1.2164 and 1.2185. Also, it should be noted that the current price is in a bullish channel.

Equally important, the RSI is still signaling that the trend is upward as it is still strong above the moving average (100) since yesterday. Immediate support is seen at 1.2164 which coincides with a major ratio (38.2% of Fibonacci).

Consequently, the first support sets at the level of 1.2164. Hence, the market is likely to show signs of a bullish trend around the spot of 1.2164 and 1.2185.

As a result; buy orders are recommended above the major ratio (38.2% of Fibonacci) with the first target at the level of 1.2242, then continue towards the top point 1.2273.

Furthermore, if the trend is able to break through the first resistance of 1.2273, it may resume to 1.2317.

On the other hand, stop loss should always be in account, consequently, it will be of wholesome to set the stop loss below the support 2 at the price of 1.2130.

The material has been provided by InstaForex Company -