FX.co ★ Technical analysis of EUR/USD for December 17, 2014

Overview:

• The EUR/USD pair has broken a major support at the level of 1.2502. But in case the daily pivot point is at the 1.2446 level, then the market will indicate a bearish opportunity below this price. Additionally, it is now approaching it, therefore, it will probably start downside movement at this area and recover again. So the market will indicate a bearish opportunity at the price of 1.2440. In the long term, it should be noticed that we got a weekly pivot point of EUR/USD pair for December 15-19, 2014 at the level of 1.2400. Therefore, the market will probably indicate a bearish opportunity at the levels of 1.2440 or 1.2400 and the weekly pivot point will act as strong resistance. So, according to the previous events, the price is still below 1.2550 (the weekly resistance 1). Thenceforward, the area below 1.2440 looks for further downside with the first target at 1.2369 level in order to form a double bottom and continue towards 1.2307 to test to the first weekly support. However, if a break in 1.2569 takes place, then it will be a good area for placing the stop loss above the double top.