The EUR / USD during the last days, remained within a range consolidating near the level of 1.22 zone of highs in years. The bullish momentum remains unchanged on daily charts, although it has lost bullish strength after failing to overcome 1.2270.
The EUR / USD pair this morning of the American session, is trading within a symmetrical triangle, trading just below the 21-period SMA, and near the lower edge of the triangle, a break below 1.2070, we would expect a decline until the support of 1.2085, on the contrary, a break of the upper edge of the triangle, we could expect a boost to 1.2268.
In 4-hour charts it shows that the pair remains consolidating in the triangle pattern, below the 21 SMA slightly bearish, the eagle indicator is showing bearish signal. Market liquidity is likely to decrease during these days, and we could see movements of a lot of volatility, so we must be careful.
The EUR / USD pair is trading below the 8/8 murray which acts as a strong resistance, if the to remain below this level, there will most likely be a correction to the 1.2140 and 1.2085 area. (6/8 of murray).
Our recommendation for today December 24 is to watch the area drawn in yellow on the 4-hour chart, if the pair is trading below that level of 1.2180, we could sell with targets at 1.2146, and if the downward pressure accompanies it up to the 1.2085 level.
The market sentiment for this morning of December 24th is showing that there are 62% of traders that are selling the EUR / USD, this shows that we could see a slight drop to the support of 1.2085 in the short term.
Trading tip for EUR/USD for December 24 – 25
Sell below (SMA 21) around 1.2180, with take profit at 1.2146 (7/8 of murray) and 1.2085, stop loss above 1.2220.
Buy above 1.2205 , with take profit at 1.2268 (+1/8 of murray) , stop loss below 1.2170.
Buy if breaks above 1.2230, (triangle pattern), with take profit at 1.2270, stop los below 1.2200.
