FX.co ★ EUR/USD Intraday Technical Analysis & Trade Recommendation December 23, 2011

EUR/USD is currently having a stong downtrend inside the marked bearish channel with its upper limit at 1.3150-1.3210.

The pair has a good resistance area at 1.3150-1.3210 which will act as a supply zone pushing the pair to resume the downside movement.

On Wednesday, The pair visited our resistance area giving us the entry signal to go short.

Now the pair is going sideways because of the confusion of the markets regarding EURO area so some profits should be taken to avoid any unexpected reversal.

Now we need to see bearish push to break 1.3050 in order to resume the downside journey which may be a good entry for those who didn't catch the original trade but of course with less profit & more risk.

Our short positon should be kept towards its final target at 1.2850 with some profits taken each 75 pips to avoid reversal of price.

Our SL should be placed above 1.3215.