EUR/USD: the pair is likely to pursue its consolidation

The downturn that began on Friday should continue in the short term, and the technical evidence points in that direction. In addition, the discovery of a new strain of the virus in the UK this weekend weighs on the euro, while the dollar is supported by the hope of a recovery plan in the United States.

KEY CHART ELEMENTS

The hourly graphical analysis of the Euro Dollar (EURUSD) exchange rate allows us to identify a short term bearish trend.

SHORT TERM FORECAST

In view of the key chart factors we have mentioned, our opinion is now negative in the short term on the Euro Dollar (EURUSD) exchange rate.

Our entry point is at $1.2155. The target price for our bearish scenario is $1.2000, which is a major support zone in the short term.

To preserve the capital employed, we advise you to position a protective stop at $1.2274, the highest level of the past week.