FX.co ★ EUR/USD trading ideas on 7 December, 2021

EUR/USD trades at fresh weekly lows in the 1.1230 price zone. Treasury yields stay firmer amid the market's optimism surrounding the new Omicron covid variant, while stocks also run. A mixed German ZEW Survey added pressure on the shared currency.

From a technical point of view, the EUR/USD pair is poised to accelerate its slump. The daily chart shows that sellers rejected advances near a firmly bearish 20 SMA for a sixth consecutive day, while, in the mentioned time frame, technical indicators resumed their declines within negative levels.

In the near term, and according to the 4-hour chart, the bearish case is even clearer, as technical indicators head south almost vertically below their midlines, reflecting strong selling interest. Additionally, the 20 and 100 SMAs maintain their bearish slopes, converging at around 1.1300. The pair is poised to test the 1.1200 level, while a break below it exposes the 1.1160 price zone, where the pair bottomed on June 2020.

Support levels: 1.1200 1.1165 1.1120

Resistance levels: 1.1275 1.1310 1.1345