The EUR/USD approaching a key obstacle in the framework of its year-end rally

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After having already increased significantly from a low to 1.1068 at the Christmas eve and a peak at 1.1108 yesterday, the EUR/USD is accentuated even more clearly its rising on Friday 27 December 2019, with a recent peak-to-1.1141.

No statistics or no specific statement does not explain clearly the rebound, which is due to a generalized weakness of the Dollar, penalized by its safe haven status (on), while the equity markets marked new records (the CAC 40 has hit a new peak of more than 12 years, 6057 points this morning), and that hope remains keen to see an agreement on China-US phase 1 signed in the month of January.

From a technical point of view, it should be noted that the pair EUR/USD has crossed its moving average 100 and 200 hours and the psychological threshold of 1.11 yesterday, and displays a profile of increasingly bullish in the short term, but caution is still in order.

In fact, the 200-day moving average at 1.1143, which has recently blocked several attempts to increase the Euro, appears as a key barrier that traders may be reluctant to proceed without the support of a current favorable concrete.

If EUR/USD turns down from the 200-day moving average, the psychological threshold of 1.11, and the moving average 100 days to 1.1060 will be the first targets of downside potential.

In the event of the crossing confirmed above the MM200 days, the psychological threshold of 1.12 will be the next target bullish.

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