FX.co ★ Technical analysis of EUR/USD for December 12, 2014

Trading recommendations:

• The market of the EUR/USD pair will turn to bearish sentiment from the level of 1.2470. Additionally, the resistance will be set at the level of 1.2489. Also, we expect a new range of 97 pips today. Therefore, it will be a good sign to sell at the 1.2470 or 1.2489 prices with the first target at 1.2405. Furthermore, it will continue in downtrend in order to keep its bearish movement towards 1.2371 (it should also be noted that the level of 1.2371 is going to form double bottom). Nevertheless, the stop loss should never exceed your maximum exposure amounts. Accordingly, the stop loss should be placed above 1.2494 (double tops in the H1 chart) at the price of 1.2515.

Notes:

• Support 1 and resistance 1 are going to set at the levels of 1.2371 and 1.2489 respectively
• It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is significant news to influence, the market price may go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.
• We expect a new range about 208 pips this week.
• The key level will set at the level of 1.2426.