Forex Trading: EURUSD Technical Analysis – December 16, 2019

After a drop in the price on the last day of the previous week, the Euro (EUR) starts recovering again with an increase against the US Dollar (USD). The price went up to more than 1.1100 following a major economic release. Looking at the technical bias, it might remain bullish since the price has printed a lower low during the last downside move on the graph.

EUR/USD: Technical Analysis

As of now, the EURUSD is being exchanged for a price being quoted around 1.1130 with at least three resistance levels ahead. The first resistance level may be seen on the graph near 1.1150, the trend line resistance which may prevent the price from increasing above this level. The price may then meet 1.1200, the psychological resistance level and then 1.1282, the high of July 19, 2019 waits to push back the price towards downside as shown in the graph below.

EURUSD

Similarly, there may be a few support levels as well which may help the price in sustaining around current level including the major horizontal support level which may come across the price around 1.10.79, ahead of the Fibonacci level sitting near 1.10.32, and then the trend line support might come into play helping the price to stay above the said level i-e 1.10.06 as shown in the graph above.

European Deposit Rate Decision

From a fundamental perspective, The European Central Bank announced the deposit rate showing the interest rate paid on the excess liquidity that credit institutions may deposit overnight in an account with a national central bank which forms a part of the Eurosystem.

Trade Idea

Trading the EURUSD around current levels for a long term position may be a good decision.

 

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