07 Dec

Euro Still Ready to Risk

December 7, 2020

Author: Dmitriy Gurkovskiy, Chief Analyst at RoboForex

On Monday, December 7th, the main currency pair is growing, trading at 1.2132, and confirms the strength of the ascending channel. Last week, the instrument renewed the highs of the last 36 months near 1.2178, but investors must have considered the pair overbought and partially took the profit.

This morning, the market is discussing the possible imposing of US sanctions on 14 Chinese diplomats connected to Hong Kong. Its independence is an acute issue for the USA, and there is a chance that before his presidency is over, Donald Trump will manage to stab China.

The statistics on the US employment market, issued on Friday, turned out to be rather stable, but because the NFP values were lower than forecasts, the dollar failed to find any serious support.

On H4, EUR/USD performed a wave of growth to 1.2071. At the moment, the market formed a consolidation range around it and escaped the range upwards. Practically, the market suggests continuing the trend upwards to the main goal of 1.2212. Today, it is correcting to 1.2100. Then we expect a link of growth to 1.2140. With its breakaway upwards, a pathway to 1.2212 will open. In the case of a decline below 1.2100, the correction might continue to 1.2070 (a test from above), followed by growth to 1.2212. Technically, this scenario is confirmed by the MACD: its signal line has escaped the histogram area and is heading downwards, to zero.

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On H1, EUR/USD has broken 1.2133 downwards and is forming a correctional structure towards 1.2110. After that, we expect a link of growth to 1.2133 (at least), then a decline to 1.2100. Then a link of growth to 1.2140 might develop. Technically, this scenario is confirmed by the Stochastic: its signal line has bounced off 80 downwards. Today, we expect it to reach 50. With its breakaway downwards, the decline on the price chart will also speed up, and the indicator will head for 20.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.


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