EUR/USD: the pair moved to sideways channel

December 26, 2014

Current trend

The market has been calm and quiet today. Fundamental data is making almost no impact on currency rates as Europe and the USA are celebrating Christmas.  From technical point of view, the EUR/USD is trading within a narrow range of 1.2226-1.2160. The price dropped behind the middle line of the Bollinger bands indicator at 1.2212 and resumed a downward movement. The bulls are probably targeted at the level of 1.2160, as its breakdown will allow the pair to drop further to the level of 1.2100.

Support and resistance

Technical indicators are not producing any clear signals, showing that the market is calm. Bollinger bands are switching to a sideways movement. The MACD histogram is in the negative zone and its volumes become stable. Stochastic lines are also directed sideways.

Support levels: 1.2160, 1.2100.

Resistance levels: 1.2212, 1.2270.

Trading tips

Short-term short positions with a target at 1.2160 opened at current price seem relevant to the situation. Pending buy orders should be placed at about 1.2160. Fix profits at 1.2212.

Dmitriy Zolotov
Analyst of LiteForex Investments Limited

Publication source
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