One week ahead (12/19-12/23)

EURUSD
The positive momentum established on the daily charts remained intact since the 1.19 break and strenghtened while the Euro managed to stay above 1.19, testing the mid-area of 1.20. Strong support was found at 1.19 followed by the key level of 1.2 .
The top reached at 1.2060 during the last week also forming the downward trendline started at at 1.2270 on 22 of September passingthrough 1.2175 reached on 27 of October. A breach through the said resistance level seen at 1.2060 may cause a change of the medium term trend and favor the Euro to climb higher, towards the next major resistance which is seen at 1.2200. We expect some strong moves during the week ahead, paying attention to the 1.2060 level first of all then focus higher.

On the other hand, a potential downward move may occur without changing the daily sentiment as long as 1.19 will hold.

Looking on a bigger picture, as the weekly chart, we notice that the bearish sentiment is intact and the yearly lows in the mid 1.16 area look fragile still.

The downward trendline formed on the weekly charts, started at 1.3480 in March and extended through the highs of September may be reached soon by potential 1.2100 tests which may also reach the 50 fib retracement of the 1.2585-1.1650 move at 1.21 .
Such failed attempts of establishing highs above 1.2100 may result in projections towards fresh lows in the 1.16 zone and below.

Pointing back to the lower time frames, both 4hrs and dailies contain the 1.19 level as a key support.
EURUSD daily chart: