Looking at the chart on the weekly time frame, we see that this pair last week failed to stay above 1.23000, making a big wick on the previous candlestick, making a downward turn. Below we have support at 1.20000, which is a psychological level for investors. The shorter time frame is bearish momentum, and we need to follow it to the end because the current trading on this pair is 50.0% -50.0%. Watching the Fibonacci pair test the level at 50.0% at 1.20600. A stronger break below 50.0% and even 1.20000 will push EUR/USD even to the possible 1.117500.
On the daily chart, we see a drop below 1.23000 to the current 1.21550, where there was a previous rejection but a short-term one. Technically much better support is at 1.20000, and it is a better place for long entry as it coincides with the bottom line of the trend and stronger support for the moving average MA100.
On the four-hour time frame, we see that the pair is currently on the bearish side, where they are now testing the moving average of the MA200. Each break below gives us a sign of a possible resumption at the bearish apartment looking for better support at lower levels. When we set Fibonacci, we see that the pair is now at 23.6% Fibonacci retracement level. If it continues with this kind of consolidation, we can see this pair soon at 1.20000.
From the news, we can single out the following: German Chancellor Merkel’s statement on the potential extension of the whole country’s lockdown until mid-April. Italian retail sales fell at the fastest pace in seven months in November, driven by weak demand for non-food products, the statistical office Istat reported on Tuesday. The value of retail sales decreased by 6.9 percent monthly in November, reversing the growth of 0.5 percent in October. This was the biggest drop since April when sales fell 10.1 percent. Analysts say concerns about COVID-19 weigh on investor sentiment ahead of the upcoming earnings season. The situation with COVID-19 is still critical in Europe, where the chief medical officer of England said on Monday that the most dangerous time of the pandemic is just ahead of us. The United Kingdom recorded more than 46,000 new coronavirus infections on Monday. Pfizer and BioNTech say their COVID-19 vaccine neutralizes a mutation found in new versions of the UK and South Africa. The European Union is racing to stop spreading a new, more contagious variant of the virus identified in the UK. Simultaneously, the French prime minister told lawmakers that, according to reports, the third blockade in France could not be ruled out.
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