EURUSD Price Analysis – December 20
The bearish momentum is getting weak and EURUSD price may reverse at the support level of $1.1206. Should the level of $1.1206 is defended by the bulls, the price may reverse and face resistance level of $1.1295 and $1.1375.The breakdown of $1.1206 level will expose the price to $1.1103 and $1.1025 levels.
EUR/USD Market
Key levels:
Supply levels: $1.1295, $1.1375, $1.1432
Demand levels: $1.1206, $1.1103, $1.1025
EURUSD Long-term trend: Bearish
EURUSD is bearish on the long term outlook. Bears are still prevailing over the bulls in the EURUSD market. Bulls are trying to push up the price when the support level of $1.1206 holds but bears are opposing the movement. Last week, the currency pair experienced a ranging movement within the $1.1395 and $1.1206 levels. There was a partial breakout at $1.1295 resistance level on 16 December but the bears interrupted the movement.
EURUSD price is currently trading below the 9 periods EMA and 21 periods EMA in which the former is making attempt to cross the later upside. The relative strength index period 14 is at 40 levels and the signal lines pointing up to indicate a buy signal. The bearish momentum is getting weak and EURUSD price may reverse at the support level of $1.1206. Should the level of $1.1206 is defended by the bulls, the price may reverse and face resistance level of $1.1295 and $1.1375.The breakdown of $1.1206 level will expose the price to $1.1103 and $1.1025 levels.
EURUSD medium-term Trend: Bearish
On the medium-term outlook, EURUSD is bearish. The currency pair has tested the support level of $1.1206 second time. It seems the sellers’ pressure is becoming weakened and the bulls are preparing to take over the EURUSD market. There is tendency for price to reverse at the just mentioned level. The chart pattern trying to form is double bottom which is a bullish reversal sign.
EURUSD is trading below the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is at the 40 level and the signal lines pointing up to indicate a buy signal.
