EUR / USD is trading at 1.1285. The pair is under downward pressure trading below the SMA of 21 located at 1.1305. A pullback is expected towards the top of the downtrend channel formed since October 25. If it fails to break, the pair is likely to resume the downward movement with targets at 0/8 located at 1.1230.

The US Federal Reserve will announce its monetary policy decision on December 15th, investors are waiting for a more aggressive policy to be adopted to contain inflation that is increasing every day.

A firm decision by the Fed could support the US dollar and could further weaken the Euro. The confirmation will come with a daily close below 1.1230. The currency pair could fall to the level of 1.1169 (-1/8) and could reach the psychological level of 1.10 in the medium term.

According to the 4-hour chart, we note that the euro has got stuck in the negative territory. Therefore, as long as it remains trading below 1.1305, we can continue selling the pair with targets at 1.1230.

A consolidation above the 21 SMA at 1.1305 and a sharp break out of the downtrend channel could be the start of an upward move.

The first target for the euro will be the 200 EMA located at 1.1383. The key level to watch is 1.1305. Above this level, we will have opportunities to buy and below we will continue to sell in the short term.

Our forecast in the next few hours for the euro is a consolidation below 1.1305. As long as EUR / USD is trading below this zone, we will have an opportunity to sell with the target at 1.1230 (0/8) and 1.1200 (bottom of bearish channel).

The market sentiment report for today, December 13, shows that there are 67.28% of operators who are buying the EUR / USD pair. This data provides a bearish sign in the long term. We could expect a recovery to 1.1383 (200 EMA). Then, the price may again resume its downward movement with the target at 1.1169 (-1/8).

Support and Resistance Levels for December 13 - 14, 2021

Resistance (3) 1.1371

Resistance (2) 1.1338

Resistance (1) 1.1301

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Support (1) 1.1244

Support (2) 1.1220

Support (3) 1.1169

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A trading tip for EUR/USD on December 13 - 14, 2021

Sell below 1.1305 (21 SMA) with take profit at 1.1230 (0/8), stop loss above 1.1335.