Thursday, December 22, 2016 7:11:27 AM
Technical analysis of the currency pair EUR/USD on 22/12/2016. The daily chart
General analysis.
This week the currency pair EUR / USD has suspended its decline and has formed a minimum at the level of 1.0350, thereby updating the minimum of the price for the last 13 years. The price has broken down a very important support level 1.0550 on which all buyers had hoped so deeply. But the price has passed this mark and successfully fixed below the support 1.0550.
Break of 1.0550 has paved the way for the EUR / USD to decline to parity or even lower.
At the moment, we see a small correction against downward movement and the level of 1.0550 is likely to be tested again. But this time it will be resistance for the price and most likely we will see a resumption of selling from this level.
You can open the transaction to sell now but in this case we risk to enter for sale directly on the corrective upward movement.
The ideal case scenario will roll back the price to 1.0550 and rebound from it down
Stop-loss on sales should be determined depending of amount of your deposit and trading hours.
For intraday and weekly traders a good mark for SL will be the area above 1.0600.
Longer-term traders can place orders at 1.0680 and above.
General analysis.
This week the currency pair EUR / USD has suspended its decline and has formed a minimum at the level of 1.0350, thereby updating the minimum of the price for the last 13 years. The price has broken down a very important support level 1.0550 on which all buyers had hoped so deeply. But the price has passed this mark and successfully fixed below the support 1.0550.
Break of 1.0550 has paved the way for the EUR / USD to decline to parity or even lower.
At the moment, we see a small correction against downward movement and the level of 1.0550 is likely to be tested again. But this time it will be resistance for the price and most likely we will see a resumption of selling from this level.
You can open the transaction to sell now but in this case we risk to enter for sale directly on the corrective upward movement.
The ideal case scenario will roll back the price to 1.0550 and rebound from it down
Stop-loss on sales should be determined depending of amount of your deposit and trading hours.
For intraday and weekly traders a good mark for SL will be the area above 1.0600.
Longer-term traders can place orders at 1.0680 and above.
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