The EUR/USD fluctuates in the short term, but the underlying trend remains positive


EURUSD daily


The pair EUR/USD seems to hesitate in the short term, after posting a rebound that has given rise to a peak at 1.1205 yesterday.

Let us recall that european statistics are favourable, including germany’s retail sales and PMI services from the euro zone, had supported the single currency, allowing the pair to bounce back after it had fallen sharply on Thursday and Friday last.

However, the Euro-Dollar was not able to hold above 1.12, without engaging in an outright correction.

Despite all this, the underlying trend remains positive, as can be seen on the daily chart shows that EUR/USD is holding above the 200-day moving average in an uptrend channel visible since the end of November.

This suggests, therefore, that the rise could resume quickly, provided that the Euro will be able to confirm a break above 1.12. In this case, the next upside will be the peak of the December 31 at 1.1240, then the top of the channel towards 1.1260 and the psychological threshold of 1.13.

Has the downside, a break below the 200-day moving average would clearly undermine the profile to the upside, with the risk of a fall on the psychological threshold of 1.11 in a first time, and then on the moving average 100 days now at 1.1065.

In regards to the news of the day, it should be noted that the exchanges will be potentially influenced by the publication of the ISM services US the month of December, expected to 16h.*

Tomorrow is the ADP report on job creation, US that will need to be monitored, which will help refine expectations for the most important statistic of the week, the report NFP on job creation, US in the month of December due Friday at 14: 30.

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