Weekly Technical Outlook: EUR/USD ; Market Forecasts for December 12TH – December 22ND

• Resistance level 1862
• Pivot Level 1800
• Support Level 1738, 1.1699, and 1.1661

Technical Analysis

The EUR/USD pair attempted to breach at the 1.1862 level. This keeps the stability of the daily close below until end of the week. This keeps the correctional bearish trend scenario valid until now and waits to resume the bearish wave that targets at the 1.1699 followed by 1.1661 levels on the near term basis. It is important to note that retest of the 1.1738 levels will complete conformation. This will push the price to test the most important support for the short term trading at the 1.1699 level directly before any new attempt to change directions. This reminds you that these levels represent the next trend keys with the price action signaling the two bar reversal and bearish momentum at negative stability below resistance area. The pair’s stochastic settle clearly within the 42.0 areas to support the attempts to gather the negative momentum.  This confirms the pair’s attempt to reach the waited target. Therefore, our bearish trend expectations will remain valid and active on the short term basis. The targets begin by surpassing the 1.1738 level to open the way towards targeting the next main station. Being aware that breaching the levels once retested level will turn the price to the bearish channel again which will lead the trading to the down side on the short and medium term basis.

Economic

• Consumer Price Index, Consumer Price Index
• Labour cost
• NAHB Housing Market Index, Building Permits Change, Housing Starts Change, Existing Home Sales
• EIA Crude Oil Stocks change, Initial Jobless Claims, Gross Domestic Product Annualized
• US Government Shutdown Limit, Core Personal Consumption Expenditure, Durable Goods Orders

Area of Interest

• Strong resistance at 1.1862 area and closed below resistance levels.
• Bearish two bar reversal rejection on trend line.
• Price action closed below trend line and oscillator below 42.0 levels indicating shift in momentum.

At Flip Area on Daily time frame resistance levels.

 
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