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The EUR/USD pair recently dropped to the 1.0350 level, marking a significant bearish movement in the ongoing downtrend. However, on Friday, 20th December 2024, the pair showed a bullish correction, closing the weekly candle near the 1.0430 level. On the H4 chart, the price is trading near the 50 EMA, while the 200 EMA remains significantly above, signaling that the bearish trend is still intact.
Key Resistance and Support Levels
- Resistance Levels: 1.0520, 1.0610
- Support Levels: 1.0330 and potentially lower
The downtrend is expected to persist, with the pair likely targeting the 1.0330 support level. Any upward movement could offer good selling opportunities. Before continuing the downtrend, the pair might test the 1.0520 resistance level, which could serve as an entry point for sellers.
Key Economic Events for 23 December 2024
Several important economic indicators are scheduled for release, which could impact the EUR/USD pair:
- Eurozone Consumer Confidence (December): This indicator provides insight into consumer sentiment in the Eurozone. A weaker-than-expected reading could put pressure on the EUR.
- US CB Leading Index (November): This index gauges future economic activity in the U.S. Positive data could support the USD and add downward pressure on EUR/USD.
- German Ifo Business Climate Index (December): This survey measures business sentiment in Germany, the largest economy in the Eurozone. A disappointing outcome could reinforce bearish sentiment for the EUR.
Trading Strategy
The EUR/USD remains bearish, with sellers currently in control. Traders should monitor the pair’s response near the 1.0520 resistance level. A rejection at this level could confirm further downside towards the 1.0330 support zone. However, if the pair breaks above 1.0520, it may signal a deeper correction before the downtrend resumes.
