December 18, 2020 : EUR/USD daily technical review and trade recommendations.
After the demonstrated sideway movement took place in November, evident signs of BUYING Pressure has originated around the depicted price zone of 1.1800-1.1840.
Shortly after, the EUR/USD pair has demonstrated a significant upside movement after the recent breakout above the depicted price zone (1.1750-1.1780) was achieved.
As mentioned in the previous article, the pair has targeted the price levels around 1.1990 which exerted considerable bearish pressure bringing the pair back towards 1.1920 which constituted a temporary KEY-Zone for the EUR/USD pair.
That’s why, another episode of upside movement was expressed towards 1.2160 where a false breakout above the price level of 1.2200 was regarded as a false bearish reversal signal.
Today, a short-term reversal pattern is being demonstrated around 1.2265. Intraday downside retracement to the downside is likely to occur.
On the other hand, Bearish closure below the mentioned price zone of 1.2200 – 1.2170 is needed to turn the intermediate outlook for the pair into bearish and enhance a quick bearish decline towards 1.2040 and 1.1920.
Trade Recommendations :-
Conservative traders should be looking only for SELL Positions around the price level of 1.2250-1.2270. Exit level should be placed above 1.2300.
The material has been provided by InstaForex Company – www.instaforex.com