Technical Analysis of EUR/USD for December 23, 2020

Technical Market Outlook:

The EUR/USD pair might be making a Broadening Wedge price pattern, which is considering to be a bearish chart pattern. The short-term demand zone located between the levels of 1.2154 - 1.2177 has been violated and will no longer be effective, so currently the next technical support is seen at the level of 1.2088. Please notice, the market is coming off the overbought conditions and the momentum is already below the neutral level of fifty, so the deeper pull-back might develop soon.

Weekly Pivot Points:

WR3 - 1.2470

WR2 - 1.2364

WR1 - 1.2314

Weekly Pivot - 1.2216

WS1 - 1.2157

WS2 - 1.2054

WS3 - 1.2003

Trading Recommendations:

Since the middle of March 2020 the main trend is on EUR/USD pair has been up. This means any local corrections should be used to buy the dips until the key technical support is broken. The key long-term technical support is seen at the level of 1.1609. The key long-term technical resistance is seen at the level of 1.2555.

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