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EUR/USD Price Outlook:
- Begins an event-packed week with a negative tone but still in the green territory.
- This may be the last week in terms of high volatility for the Forex sphere.
EUR/USD Price: Lingers inside a rangebound ahead of an event-packed week
The common currency begins a full event-packed week within a negative tone. However, it remains in the positive territory on a monthly basis. The resistance level of 1.1102 is still acting as a strong barrier to the upside and assists in limiting the move across the board, together with the 200 SMA at the 4H chart.
The EUR/USD pair also found critical support around 1.1014, where a demand zone has been established.
Among the events, the ECB and UK elections are looming in the economic calendar that could strongly affect the FX sphere ahead of New Year’s Eve.
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Critical week ahead
Such a statement suggests that this week may be the last in terms of high volatility for the Forex space. Thus, this week will be critical in defining the structure of the spot across the board.
Once the pair breaks above the resistance, eyes will be on the 1.1177 level. Which acted as a supply zone in October, helping to limit gains.
If that area is cleared out by the bulls, a rally is expected to take place towards the 1.1230 level. This is the latest hurdle ahead of the 1.1280 zone, and such a move should strengthen the bullish bias for the rest of the month.
What about the bears?
To the downside, the support that lies at 1.1014 is the first tough nut to crack. If it gives up in favour of the bears, the focus will shift towards the 1.0946 level. A breakout below could open the doors to test the 1.0880 handle. A move that could give a boost to the bears’ force for the mid-term, at least.
According to the technical oscillators, the RSI indicator is remaining within the negative territory, favouring the bears. However, momentum is slightly pointing upwards, signalling further advances for the short term.