Relevance up to 17:00 2020-12-30 UTC+3
The EUR/USD pair has been oscillating between the two converging trend lines, which have formed the symmetrical triangle pattern. The pair broke above the top of this line in today’s European session, but then quickly pulled back to the 1.2200 support. So, in case of another bullish breakout through the triangle above today’s high at 1.2250, we could expect the testing of the1.2275 region of the +1/8 of murray and 1.2335 +2/8 of murray.
Conversely, any significant pullback towards the zone of 1.2210 could still be seen as a buying opportunity and remain limited near the triangle support around the area of 1.2185.
Furthermore, a subsequent drop below 1.2180 could trigger some technical selling and accelerate the slide towards the 1.2145 congestion zone, the 7/8 murray, that should act as a key point for short-term long deals on the EUR/USD pair.
EUR/USD still maintains its upward potential on 1-hour charts, given that it is being supported by the eagle indicator, which is showing a bullish bias in the early American session. However, if it fails to hit a new high, we could expect a technical correction to the 1.2145 support zone.
On the chart below, we have highlighted a yellow area which indicates the strength of the market. If the EUR/USD pair is trading above this area, we have buying opportunities while if it is trading below, we will have short opportunities.
On December 28, the market sentiment shows that there are 62% of traders who are selling this pair. We also noticed a small decrease which is likely to be a technical correction for the next few days.
Trading tip for EUR/USD for December 28 – 29
Buy above 1,2212 (SMA 21) with take profit 1.2245 and 1.2269, stop loss below 1.2185.
Sell below (EMA 200 and SMA 21) around 1.2180, with take profit at 1.2146 (7/8 of murray) and 1.2085, stop loss above 1.2215.
Buy if the pair rebounds around 1.2145 (7/8), with take profit at 1.2207 (8/8 of murray) and 1.2249, stop loss below 1.2110.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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