FX.co ★ Technical Analysis of EUR/USD for December 20, 2021

Technical Market Outlook

The bounce on EUR/USD had ended with a Bearish Engulfing candlestick pattern on the H4 time frame chart and the market reversed sharply back into the short-term channel area. The next target for bears is seen at the level of 1.1228 - 1.1222, but the game changing level is the technical support seen at 1.1185. Only a sustained breakout above the 1.1332 - 1.1375, key short-term supply zone, would have change the outlook to more bullish the nearest future.

Weekly Pivot Points:

WR3 - 1.1445

WR2 - 1.1399

WR1 - 1.1307

Weekly Pivot - 1.1265

WS1 - 1.1167

WS2 - 1.1124

WS3 - 1.1028

Trading Outlook:

The market is in control by bears that pushed the price way below the level of 1.1501 and 1.1360, which was the lowest level since November 2020. The next important long-term target for bears is seen at the level of 1.1166. The up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021) only if bullish cycle scenario is confirmed by breakout above the level of 1.1909 and 1.2000.