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21.12.2020 12:02 PM
Technical recommendations for EUR/USD and GBP/USD on 12/21/20

EUR/USD

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The fundamental data intervened with the current technical outlook. As a result, the pair opened the new trading week with a large downward gap, supported by an important line of 1.210. As the situation develops further, it will be important to know the result of the current interaction. If the pair closes the gap and rallies to the previous week's high (1.2273), then the bulls will have an opportunity to continue the upward movement. But if they do not manage to cope with the situation, then closing at 1.2170 will have far-reaching plans. In this regard, the bulls will lose the support of the daily short-term, which will lead to the bears striving to implement a weekly correction.

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Currently, there is a struggle in the smaller time frame to reach the key level – weekly long-term trend (1.2197). If they don't conquer the area of 1.2197-70, the current balance of power will change, which will open up new prospects for the bears.

For the bulls, two pivot points: 1.2251 (central pivot level) and 1.2273 (last week's high extreme) are important today.

GBP/USD

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Today, the bears are using the opportunity of news noise to return to their previous positions within the day, blocking all the bulls' achievements last week. Now, the bears have quite successfully left the monthly cloud and are testing the support of the weekly short-term trend (1.3239), strengthened by the historical limit of 1.32. If it consolidates below, new opportunities are possible. However, the situation may persist again in case of slowdown.

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All the pivot points were left far behind in the smaller time frame and this favors the bears. The downward trend is also in its active phase. The support levels of 1.3239 - 1.32 - 1.31 can be noted in the bigger time frame. On the other hand, the key resistances in the one-hour chart are now located at 1.3459 (weekly long-term trend) and 1.3526 (central pivot level).

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classical), Moving Average (120)

Evangelos Poulakis,
Analytical expert of InstaForex
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