The euro is consolidating above the 21 SMA located at 1.1299 and below the strong resistance of 2/8 Murray located at 1.1352.
Since November 24, it has been forming the Ascending Wedge technical pattern. The pair movement is likely to continue within this pattern in the coming days, due to the low volume of the market.
According to the daily graph, a positive bias is observed for the euro-dollar. As long as it remains above 1.1300 and continues to trade within the technical Wedge pattern, we could expect the euro to make a sharp break above 1.1352.
A sharp break and consolidation in daily charts above the resistance of 2/8 Murray located at 1.1352 will be a confirmation of the signal for a new bullish wave in the euro in the short term.
If the euro consolidates above 1.1350 in the next few days, the first target will be the zone of 4/8 Murray located at 1.1474 and then it could reach 6/8 Murray and the level of 200 EMA located at 1.1650.
Conversely, if the euro fails to consolidate above 2/8 Murray and above 1.1360, there is likely to be a technical correction targeting the bottom or bullish line of the Wedge pattern.
Support and Resistance Levels for December 30 - 31, 2021
Resistance (3) 1.1413
Resistance (2) 1.1384
Resistance (1) 1.1357
----------------------------
Support (1) 1.1288
Support (2) 1.1248
Support (3) 1.1230
***********************************************************
A trading tip for EUR/USD on December 30 - 31, 2021
Buy above 1.1352 (2/8) with take profit at 1.1474 and 1.1596 (6/8), stop loss below 1.1320.