Technical analysis of EUR/USD for December 30, 2020

Overview :

EUR/USD : Further close above the high end may cause a rally towards 1.2259. Nonetheless, the weekly resistance level and zone should be considered.

The EUR/USD pair will continue to rise from the level of 1.2259. The support is found at the level of 1.2232, which represents the 61.8% Fibonacci retracement level in the H1 time frame.

The price is likely to form a double bottom. Today, the major support is seen at 1.2232, while immediate resistance is seen at 1.2295.

Accordingly, the EUR/USD pair is showing signs of strength following a breakout of a high at 1.2259.

So, buy above the level of 1.2259 with the first target at 1.2295 in order to test the daily resistance 1 and move further to 1.2316.

Also, the level of 1.2295 is a good place to take profit because it will form a double top.

Amid the previous events, the pair is still in an uptrend; for that we expect the EUR/USD pair to climb from 1.2232 to 1.2316 today.

At the same time, in case a reversal takes place and the EUR/USD pair breaks through the support level of 1.2232, a further decline to 1.2130 can occur, which would indicate a bearish market.