EURUSD Consolidates With Downside Bias, Forecast For 2020

EURO- dollar -6598745454

The long-term outlook in EURUSD remains neutral with risk to the downside. Support comes at the 1.0507 levels ( high of 2002) while resistance comes at 1.2330 levels (low of 2008). On the downside, a sustained breakout below 1.0500 levels aims the 0.8562 levels, further down, support comes in the 0.7815 levels.

Levels to watch in 2020: The key support 1.0500 and the key resistance 1.2090/1.2330

On the upside, immediate resistance comes at the 1.2092 levels ahead of 1.2330 levels. A halt is very likely, it should fall from here. But if this fails to happen. A corrective recovery to 1.3993 levels ( high of 2014 ) will be in sight.

In conclusion: The EURUSD still faces downside threats below 1.2330/1.2092 levels in 2020 and the coming years with risk to 1.0500 levels ahead of 0.8500 levels.

Support: 1.0500, 0.8560, 0.7815, 0.6165

Resistance: 1.2090, 1.2330, 1.3993, 1.4965

Note: The key resistance 1.3993 (high of 2014) protects the whole fall from 1.6038 (high of 2008).

What you need to watch in 2020:
  • The pair is under pressure and further downside couldn’t be ruled as long as trades below 1.2090/1.2330 levels. Any rebound to that level is a selling opportunity. It’s highly recommended to track the pair around that level on the monthly/weekly timeframe to look for any possible reversal sign ( B. Band reversal, Bearish Divergence(s), Reversal patterns, Candlesticks…etc). This would be an early warning for a possible rejection.
  • The key support 1.0500 (high of 2002) protected the pair from further falling in 2015,2016 and 2017. Stability above this level will suggest possible recovery. But it needs to overcome 1.2090/1.2330 level to activate the recovery mode. No signs of a possible reversal or weakness, followed by a sustained breakout above 1.2090/1.2330 on (Monthly/weekly) timeframe. It will increase the risk to the psycho level 1.4000 in 2020 and the coming years (1.2090/1.2330 will serve as support)…But in return; A sustained break below the key support 1.0500 without any sign of a possible rebound on the monthly/weekly timeframe. It may bring free fall to 0.8500/0.7815 levels in 2020 and the coming years (1.0500 will serve as resistance)…