Trading plan for EUR/USD for December 30, 2020

Technical outlook:

EUR/USD has managed to reach the 1.2294 level today, close to 1.2300/20 levels as expected and discussed earlier. Probability still remains for another push through 1.2300/30 but upside potential remains limited and hence it is safe to sell on rallies. The single currency is seen to be trading around the 1.2270 levels at this point of writing and is expected to reverse lower from here. Immediate price resistance zone is located around 1.2300/30, while support comes in at 1.2190, followed by 1.2130 levels respectively. A breakthrough below 1.2130 would certainly confirm that EUR/USD has carved a meaningful top and that bears are back in control. The much-awaited trend reversal might materialize in the next few days and turn lower towards 1.1600 levels in the coming few weeks time. Watch out for a breakout below 1.2130 levels going forward.

Trading plan:

Remain short against 1.2450, target at 1.1600

Good luck!