Trading recommendations on EUR/USD for December 12, 2014
The price level of 1.2880-1.2900 (according to the upper limit of the prior broken channel) was targeted month before. Though, bearish demands were applied before around 1.2800-1.2840 zone where the depicted head and shoulders reversal pattern was made.
A bearish breakout off the bullish channel positioned soon, hence proving a flag continuation pattern. Bearish predicted target already achieved the level around 1.2490.
As expected earlier, daily fixation below 1.2490-1.2500 increases the bearish targets towards the price zone of 1.2200.
Following bears could possess below 1.2360, the EUR/USD pair has shown bullish upturn again above it due to the lack of bearish pressure below 1.2255.
Price zone of 1.2200 continues the expected target of the existing bearish flag pattern as long as 1.2500 stays defended by the EUR/USD bears.
The double-top pattern was positioned last week on the 4H chart around level of 1.2500. As expected, fixation below neckline (price range of 1.2430) improved the bearish movement on the market.
Yesterday, bulls spiked up to 1.2496. But, the market came back to trade below 1.2400. It could stand for a fake bullish breakout off the upper limit of the depicted trend channel.
Fixation below the technical key level of 1.2370 is set to continue sufficient bearish power to push towards 1.2200.
Then again, 4H end above the price zone of 1.2460-1.2480 (Wednesday’s daily high) revokes the recommended bearish setting temporarily revealing price levels of 1.2580 for retesting.
As expected earlier, intraday traders can go for SHORT the pair anywhere around the price 1.2410 -1.2450. Stop Loss should be placed at a four-hour closing above 1.2470.
Target level should be positioned around the price level of 1.2200.