Weekly Technical Outlook: EUR/USD; Market Forecasts for December 19th – December 23rd

• Resistance level 1.05247, 1.0669, 1.0725
• Pivot Level 1.04199
• Support Level 1.03959

Technical Analysis

EUR/USD pair is looking for a consolidation pattern from 1.03959 levels and is still in progress with support holding the levels.

The price action produces a strong bullish momentum at the close of the week with the candle making some pull back indicating a shift in momentum to upside bias with the pair closing above the break of trend line.

EUR/USD pair looks for corrective upward bias with price action confirming the bullish movement medium term rally which is still in progress from current levels with pair finding support and oscillator still above 14.0 levels.

An upward momentum looking towards sustained trading above 1.04199 levels confirms strong long term momentum. This will remain the favoured case as long as support holds and when there is a break in these levels, one can expect levels of 1.05247 and later to 1.0669.

The outlook remains bullish for week.

Economic

• Labour cost
• Existing Home Sales, Initial Jobless Claims, Gross Domestic Product Price Index
• Durable Goods Orders ex Transportation, Michigan Consumer Sentiment Index

Area of Interest

• Strong support at 1.03959 area and closed above support levels.
• Bullish momentum with two bar reversal and pair strongly closing above the support area.
• Price action closed above the break of trend line and oscillator above 14.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame support levels.