FX.co ★ December 16, 2020 : EUR/USD daily technical review and trade recommendations.

After the demonstrated sideway movement took place in November, evident signs of BUYING Pressure has originated around the depicted price zone of 1.1800-1.1840.

Shortly after, the EUR/USD pair has demonstrated a significant upside movement after the recent breakout above the depicted price zone (1.1750-1.1780) was achieved.

As mentioned in the previous article, the pair has targeted the price levels around 1.1990 which exerted considerable bearish pressure bringing the pair back towards 1.1920 which constituted a temporary KEY-Zone for the EUR/USD pair.

That's why, another episode of upside movement was expressed towards 1.2160 - 1.2200 where a false breakout to the upside can be regarded as a bearish reversal signal.

Hence, Bearish closure below the mentioned price zone of 1.2100 is needed to turn the intermediate outlook for the pair into bearish and enhance a quick bearish decline towards 1.2040 and 1.1920.

Trade Recommendations :-

Currently, Conservative traders should be looking only for SELL Positions after breakout below the price level of 1.2150-1.2170 occurs. Exit level should be placed above 1.2177.