EUR-USD – daily Chart
By David Wagner
The Euro is weakening slightly on Tuesday after a rebound from a more down to 1.1085 last Friday, up to a peak towards 1.1145 yesterday.
The EUR/USD is evolving at present to 1.1130, in a technical context which seems to suggest sales opportunities.
Indeed, the recent rebound was blocked by the moving average of 200 hours (1.1145) and by the 200-day moving average (1.1139), which form a key resistance zone, in which the Euro-Dollar is returned this morning.
In addition, it will be recalled that the EUR/USD pair is output by the bottom of an uptrend channel visible since mid-November daily data last Wednesday. The rebound that has taken place since has ended on the old lower bound of this channel, which confirms the exit by the bottom and therefore the signal graph of sales.
Note that the news has been very very busy yesterday, and as the economic calendar remains light today, with only the CPI US to the program and the data that become secondary in light of the commitment of the Fed to not change its rate for the moment.
This leaves the evolution of the EUR/USD pair more dependent on technical factors than usual.
As regards the thresholds to watch for in the short term, it should be noted that a continuation of the correction that began this morning would put the pair in the face of potential targets on the psychological threshold of 1.11, and then the low of last week at 1.1085, and the moving average 100 days currently at 1.1066, before the psychological threshold of major 1.10, and the hollow of the 29 November at 1.0980.
Has the upside, a break above the MM 200 days and 200 hours (1.1139-1.1145) would open the way for a test of 1.12, before the summit of December 31, 2019 at 1.1240, then the psychological threshold of 1.13.