FX.co ★ Forecast for the EUR / USD It stabilizes around 1.2130, for December 08-09.

On 1 hour charts, the EUR/USD pair has left a fractal formation, moving down. This may be the first sign of bullish exhaustion, although it is necessary to wait for a confirmation before a change in trend in the medium term.

Technically, we are noticing some signs of a probable downward correction, perhaps up to the zone of EMA 200 days at 1.2034, this level could offer the EUR/USD pair a good upward rebound. If on 1 hour chart, the pair breaks this level, a downtrend reversal is likely in the medium term.

The 6/8 of the murray line is the close support that the EUR/USD pair has. Yesterday, we saw a rebound in that area. If the pair breaks above this level, we expect the level of the 200-day EMA and the 5/8 Murray provided good support for the pair.

Our recommendation is, if the pair remains above 1.2128, it will likely try to seek the 1.2045 and 1.2165 area. On the other hand, below 1.2128, it would be a good opportunity to sell until the pair finds support near the levels of 1.2083 and 1.2066.

The eagle indicator in 1 hour charts has reached the oversold zone, which in the next few hours could occur a new upward momentum. Before taking a bullish position we must wait for a support zone to buy again.

Medium-term analysis in 4-hour charts.

According to the 4-hour chart, the EUR/USD pair technically remains within an uptrend channel, although it is now trading below the 21-day EMA. If it consolidates below that zone, it could have increased the downward pressure. The eagle indicator for December 4 had touched the top of 95 zone with a strong bearish signal, which we later saw confirmation when the euro made a correction to 1.2078 in the American session on Monday.

According to the 4-hour chart, we see a change in the medium-term outlook of the market as the 1.2130 level is offering downward pressure to the pair. If the euro moves away from this level, it will be a sign of a downward continuation, and we can sell only if the euro is trading below this level.

Market sentiment has decreased slightly and remains at 69.79% this morning, which still remains an upward force in the market for the next few days, therefore our recommendation is to buy every time the euro makes a correction in the support zones .