EUR/USD: technical analysis 16.12.19

Current trend

The EURUSD pair begins today’s trading with a slight bullish bias. The price went up above the middle line of Bollinger Bands (1.10278) and can grow further to the level of 1.10389. This level can activate a downward rebound, while its breakout would be a signal for upward trend resumption and give a prospect of growth to the area of 1.11694 resistance.

Alternative scenario

The rebound from 1.11389 and pullback below 1.11222 could lead the price back to 1.11084 support which seems a key level for the sellers in the short term period. The decisive breakdown of 1.11080 is needed to indicate the downward trend resumption. In this case, the next targets of sellers will be the level of 1.10779.

Technical indicators

The technical picture is mixed.

Bollinger Bands are pointed sideways.

MACD volumes are decreasing in the positive zone, forming a week sell signal.

Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 1.11222, 1.11084, 1.10779.
Resistance levels: 1.11389, 1.11694, 1.12000.

Trading recommendations

Short positions can be opened below the level of 1.11080 with the target at around 1.107779 and stop-loss at 1.11180.
Long positions can be opened above the level of 1.11389 with the target at around 1.11694 and stop-loss at 1.11289.

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