16.12.202112:30 Forex Analysis & Reviews: Trading plan for EURUSD for December 16, 2021

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Technical outlook:

EUR/USD dropped to 1.1222 lows on Wednesday after the FOMC meeting. However, it recovered quickly, closing the day around 1.1286. The pair is seen to be trading around 1.1312 at the time of writing, ready to break through the resistance level. It seems to have completed the corrective drop at 1.1222 as bulls are now inclined to push the pair to 1.1500 at least.

EUR/USD is facing immediate price resistance around 1.1690, while support comes n around the 1.1160 mark. Bulls are looking poised to push prices above 1.1690 and also break the resistance trend line. Only a consistent drop below 1.1186 would test further toward the 1.1000 mark and change the bullish structure.

The corrective drop between 1.1383 and 1.1222 has taken a complex structure but a higher low seems to be in place now. EUR/USD has bounced from just below the Fibonacci 0.618 retracement of the previous rally between 1.0636 and 1.2350 respectively. High probability remains for a continued push through 1.1500 and 1.1700.

Trading plan:

Potential rally through 1.1500 against 1.1186.

Good luck!

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