FX.co ★ Trading Signal for EUR/USD for December 07 - 08, 2020: Sell Below Strong Resistance at 1.2165

This morning the EUR/USD pair has rebounded after having fallen to the low of 1.2077, a zone that coincides with 6/8 of murray, which we consider as a strong support in the short term. If you see on the chart we have drawn the Fibonacci line from its high of 1.2176 to the low of 1.2077.

According to Fibonacci, we expect that in the next few hours there will be an upward movement to the 61.8% level around 1.2145 as the first objective and, 1.2165 zone of strong resistance. If it exceeds this level, the pair will keep an upward movement. We must be careful if we buy the EUR/USD pair above 1.2165.

On 1 hour charts. the EUR/USD pair has left a Pinbar candle, with the 6/8 murray channel which supports that the upward rebound could continue for the next few hours. The resistance levels are found at 1.2140 and 1.2165 . and 1.2477 monthly highs.

Our recommendation is to sell this pair if it makes a technical rebound to the level of 1.2165, a key area if it consolidates below this level will be a good selling opportunity, if it breaks and surpasses this area, we must avoid selling since it is likely that it will try exceed its high of 1.2177 on Friday.

The eagle indicator for this morning of December 07 has touched the 05 level which is giving a buy signal, and we could consider buying on this bounce to 1.2145 (61% Fibonacci) and 1.2165 (strong resistance).

Market sentiment shows that there are 72% of investors who are selling the EUR/USD pair, it remains unchanged from last week. If this percentage increases, the pair may break above the 1.2177 area and we could expect a bullish move to 1.23 in the medium term.

Trading tip for EUR/USD for December 07 – 08

Buy if the pair rebound around (6/8 murray) at 1.2085 with take profit at 1.2145, and 1.2165, stop loss below 1.2055.

Buy Now at 1.2106 with take profit at 61.8% of Fibonacci, stop loss below 5/8 murray.

Sell if the pair pullback to 1.2165, with take profit 1.2130 and 1.2090, stop loss above 1.2195.