EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- EUR/USD trades at 1.0969, facing resistance at 1.0879 and 1.1021, with a pivot point at 1.0754 signaling key market movements.

- RSI at 65 suggests bullish potential, but a bearish engulfing pattern near 1.09770 points to possible downward pressure.

- Overall trend appears bearish below 1.09770; short-term forecasts indicate a test of resistance levels with close monitoring of technical indicators.

As of December 20, the EUR/USD pair is navigating a delicate balance in the forex market. Currently priced at 1.0969, it shows a modest decline of 0.1%. The pair finds itself fluctuating around significant technical levels, with a pivot point established at 1.0754. Resistance levels are observed at 1.0879, 1.1021, and 1.1146, while support is anchored at 1.0611, 1.0487, and 1.0362.

The technical indicators paint a mixed picture. The Relative Strength Index (RSI) at 65 leans towards a bullish sentiment but stops short of the overbought threshold, indicating potential room for growth. However, the Moving Average Convergence Divergence (MACD) shows a near-zero value of 0.00006 against a signal of 0.00263, suggesting a lack of strong momentum in either direction.

The 50-Day Exponential Moving Average (EMA) at 1.0957 slightly underpins the current price, reinforcing a short-term bullish trend. Nevertheless, a bearish engulfing candle pattern near 1.09770 signals potential bearish bias, indicating that the pair is likely to stay bearish below 1.1005.

EUR/USD - Trade Idea 

Entry Price – Sell Below 1.0981

Take Profit – 1.0905

Stop Loss – 1.1050

Risk to Reward – 1: 1.1

Profit & Loss Per Standard Lot = +$761/ -$688

Profit & Loss Per Mini Lot = +$76/ -$68