Remain neutral | 16 December 2020

Technical observation

EUR is trading with an increasing bearish momentum below a resistance line 1.2171, I expect a decline to the supportive zone 1.2077-1.2070 followed by a bounce within it however, price could still rise and break above the resistance line 1.2171. If this is the case, wait for a correction to it and a bounce confirming bullish movement before you buy EUR. In case of a decline to the zone mentioned above, buy EUR within it after a bounce with your take profit at 1.2171 and stop loss at 1.2023. Should there be a clear break below the zone 1.2077-1.2070, wait for a correction to it before you sell EUR.

Trade recommendation

Remain flat.