Technical Analysis of EUR/USD for December 21, 2021

Overview :

The EUR/USD pair continues to move upwards from the level of 1.1227. According to the previous events, the EUR/USD pair is still moving between the levels of 1.1227 and 1.1360.

On the one-hour chart, immediate resistance is seen at 1.1331, which coincides with a ratio of 78% Fibonacci retracement. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100) and (50).

Therefore, if the trend is able to break out through the first resistance level of 1.1331, we should see the pair climbing towards the daily resistance at 11360 to test it.

It would also be wise to consider where to place stop loss; this should be set below the second support of 1.1201.

Signal :

Buy above the spot of 1.1258 with the targets 1.1331 and 1.1361. On the other hand, the daily strong support is seen at 1.1227. If the EUR/USD pair is able to break out the level of 1.1227, the market will decline further to 1.1173.