20.12.201808:46 Forex Analysis & Reviews: Technical analysis for EUR/USD for December 20, 2018

Long-term review

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EUR/USD made another try yesterday to break above the 1.14-1.1430 resistance area but if failed once again. Price remains inside the range of 1.13-1.14 since November. The triangle scenario has been canceled as both the downward break and yesterday's upward break were fake ones.

Green line - bullish RSI divergence

Yellow rectangles - range boundaries

Red line - major trend line resistance

EUR/USD reached 1.1440 yesterday but got rejected at the upper range boundary. So far we have seen three tops in this area and all of them resulting in a pull back towards 1.13 or lower. So far around 1.1270-1.13 we have seen two lows and two bounces. There will not be a fourth rejection at 1.1430. Next time we see move towards that level I expect it to be broken. If we do not move towards 1.1430, it is important to be patient and see how market reacts again at the lower boundary support at the 1.1270-1.13 area.

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