Daily technical and trading outlook - EUR/USD

AceTrader Team AceTrader

DAILY EUR/USD TECHNICAL OUTLOOK

Last Update At 15 Dec 2020 02:20GMT

Trend Daily Chart

Daily Indicators

Bearish divergences

21 HR EMA

1.2146

55 HR EMA

1.2137

Trend Hourly Chart

Sideways

Hourly Indicators

Neutral

13 HR RSI

14 HR DMI

+ve

Daily Analysis

Choppy consolidation to continue

Resistance

1.2257 - 1.618 times ext. of 1.1603-1.1919 fm 1.1746
1.2216 - 61.8% proj. of 1.1925-1.2177 fm 1.2060
1.2177 - Mon's n Dec 04 2-1/2 year high

Support

1.2106 - Last Fri's low
1.2082 - Last Thur's European low
1.2060 - Last week's low (Wed)

EUR/USD - 1.2150.. Euro opened higher to 1.2143 Mon n quickly retreated to 1.2116 in Asia but renewed buying emerged at European open n later pushed euro to 1.2177 in NY morning b4 retreating to 1.2123 on rebound in usd.

On the bigger picture, despite euro's LT upmove fm 2017 near 14-year low of 1.0341 to a fresh 3-year peak of 1.2555 in mid-Feb 2018, price tumbled to a near 3-year 1.0637 low in Mar 2020 on broad-based usd's strength. Euro's subsequent rally to a 2-year peak of 1.2011 in Sep due to risk-on trade suggests said fall has ended. Having said that, euro's rally to 1.1919 in early Nov signals correction is over n the break of 1.2011 to 1.2177 in early Dec would head to 1.2204, 'bearish divergences' on daily indicators would cap price at 1.2300. On the downside, only below 1.1919 (prev. res, now sup) signals top is made, then risk is seen for correction to 1.1800, then later, 1.1746 in late Dec/Jan.

Today, although euro's re-test of prev. Dec's 2-1/2 year peak of 1.2177 n then a brief but strg retreat to 1.2123 signals choppy trading below 1.2177 may continue, rising daily indicators suggest upside bias remains n 1.2082 sup should hold, yield another rise. Abv 1.2177 would head to 1.2216, 1.2257.

Author

AceTrader Team

AceTrader

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

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