Overview :
The EUR/USD pair closing a raucous year above the level of 1.2200 in 2020. Also, it should be noted that : the past year has seen a range of over 1,672 pips (1.2310 high - 1.0638 low) in EUR/USD, as well as how markets respond and lessons to take forward.
The EUR/USD pair set above strong support at the level of 1.2209, which coincides with the 23.6% Fibonacci retracement level. This support has been rejected for four times confirming uptrend veracity.
Hence, major support is seen at the level of 1.2209 because the trend is still showing strength above it.
Accordingly, the pair is still in the uptrend from the area of 1.2209 and 1.2178. The EUR/USD pair is trading in a bullish trend from the last support line of 1.2209 towards the first resistance level at 1.2244 in order to test it.
This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.2209 and further to the level of 1.2244.
The EUR/USDpair is continuing to trade in a bullish trend from the new support level of 1.2209; to form a bullish channel.
According to the previous events, we expect the pair to move between 1.2209 and 1.2310. Notice that the major resistance is seen at 1.2281, while immediate resistance is found at 1.2260. Then, we may anticipate potential testing of 1.2244 to take place soon.
The level of 1.2310 will act as major resistance and the double top is already set at the point of 1.2310.
At the same time, if a breakout happens at the support levels of 1.2178 and 1.2154, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.
Trading recommandations :
If the pair succeeds in passing through the level of 1.2228, the market will indicate a bullish opportunity above the level of 1.2228. A breakout of that target will move the pair further upwards to 1.2310.
Buy orders are recommended above the area of 1.2228 with the first target at the level of 1.2244; and continue towards the abjoctives of 1.2260, 1.2281 and 1.2310. On the other hand, if the EUR/USD pair fails to break out through the resistance level of 1.2310; the market will decline further to the level of 1.2178.
