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27.12.2020 04:00 PM
European Central Bank kept euro from rising until the end of the year

Trading closed below the 1.2199 level last week. This indicates that the upward momentum has stopped. The main target for a decline is the lower area at 1.2097. Reaching this level will make it possible to buy EURUSD at favorable prices, expecting to sustain the upward medium-term momentum.

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Corrective selling is possible in case the 1.2199 level has been retested. Take note that the downward movement will remain corrective for now, so taking a short position will be required.

The pair has been forming a local accumulation zone for the last two weeks. This makes it possible to work in a flat phase. The limits of the flat will serve as excellent reference points for finding entry and exit points from trades. It is important to understand that there is a 70% probability that the pair will stay within the 1.2097 level before the year ends.

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