Good morning, wherever you are on this New Year’s Eve. Here’s our summary of technical news over the holiday break that affects the euro currency.
The EURUSD is rising, now trading at 1.1200 and a five-month high whereas over the year, the common currency still down by nearly 4.00%.
The price ended strongly in the penultimate session of the year with EURUSD above 200MA for the first time since June 2019. It was in range-bound, now moved the bar higher, lack of fresh triggers, and holiday mood influenced investors to take a cautious approach.
The EURUSD hit 1.1220 levels yesterday and closed above the 1.1200 level for the first time since August 2019. Is that cause for celebration, nervousness, or is it a meaningless number that shouldn’t matter at all?
The honest answer is “all of the above.” In terms of pure fundamentals, the 1.1200 level is no more relevant than any other number.
Technically, the EURUSD has confidently closed above 100 and 200MAs, which is positive for the short and near term, and the strategy should be to trade long on dips. On the downside, the 1.0980 level would be the ultimate support for the markets. We advised the same strategy on our previous weekly report and suggested the same into the near year aswell.
The initial hurdle for EURUSD remains at the trendline near 1.1250. Once we get past that, we should head to 1.1280 its C point.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
What is your Technical View?
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