FX.co ★ Technical analysis of the EUR/USD pair for Dec 20-25, 2021

Trend analysis

The price from the level of 1.1236 (closing of the last weekly candle) will possibly start rising to the target of 1.1305 – the historical resistance level (blue dotted line) this week. In the event that this level is broken up, it may further increase to the target of 1.1440 – the pullback level of 23.6% (blue dotted line).

Fig 1 (weekly chart)

Indicator analysis:

• Indicator analysis - up
• Fibonacci levels - up
• Volumes - up
• Candlestick analysis - up
• Trend analysis - up
• Bollinger lines - up

An upward movement can be concluded based on a comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in an upward trend, both without a lower shadow (Monday - up) and without an upper shadow (Friday - up) in the weekly white candlestick.

This week, the price from the level of 1.1236 (closing of the last weekly candle) may begin its growth to the target of 1.1305 – the historical resistance level (blue dotted line). If this level is broken up, the upward movement may continue to the target of 1.1440 – the pullback level of 23.6% (blue dotted line).

Alternatively, the price from the level of 1.1236 (closing of the last weekly candle) may continue to decline so that it can test the historical support level of 1.1174 (blue dotted line). After reaching this level, it is likely to rise to the target of 1.1343 – the pullback level of 14.6% (blue dotted line).