- Summary:
- The EURUSD remains bid but bears should watch some important levels that suggest a move back to 1.20 might be in the cards. The Fed is key tomorrow.
The EURUSD pair sits at the 2020 highs with little or no pullbacks visible. It simply remains bid after last week’s ECB fiasco when the press conference ended up hawkish on a dovish statement.
On top of the ECB’s failure to properly communicated its message, it is December 15 already. Effectively, it means that the price action in the currency market will soon be driven (if not already) by trading algorithms chasing stock market futures.
With little or no important economic events ahead (with the exception of tomorrow’s FOMC Statement and press conference), the EURUSD trades with a bullish bias. However, for the ones willing to take a chance on the short side, the EURUSD might offer some interesting setups for a move at least to the 1.20 level.
EURUSD Technical Analysis
The first thing that strikes the eye here is the 1.2175 level, where the pair hesitated many times now. Should we see a clear rejection, then the gates open for a double top.
Second, the current price action seen since last week resembles a rising wedge. These are dangerous patterns – while most of the time signal a reversal, sometimes they do signal continuation.
As such, bears should wait a break below the wedge, and on the three key levels that defined the recent rising trend. On such a move, the 1.20 level becomes the target, with a move above the highs invalidates the scenario.
EURUSD Price Forecast
