FX.co ★ Trading plan for EURUSD on December 20, 2022

Technical outlook:

EURUSD slipped below 1.0600 intraday on Tuesday as the bears come back strong from the 1.0652 highs hit during the early Asian session. The single currency pair is seen to be trading close to 1.0580 at this point in writing as the bears look determined to break below the 1.0570 interim support. The engulfing bearish candlestick pattern on the daily chart is following through at the moment.

The bears are now holding the upper hand over EURUSD since the 1.0736 highs were printed last week. The currency pair had reversed sharply right at the 18-month-old resistance trend line as seen on the daily chart. If the above holds well, the bears might want to remain in control and target the 1.0100 mark at least in the next few weeks.

Furthermore, if prices break below 1.0100, which is the Fibonacci 0.618 retracement of the recent upswing between 0.9740 and 1.0736, it could confirm a further bearish outlook for the pair. If the larger-degree downtrend has resumed from 1.0736, EURUSD might be heading below 0.9535 in the next several weeks.

Trading idea:

Potential bearish turn against 1.0750

Good luck!