EURUSD:- Daily Resistance Holds Firm
EURUSD:- The price reached previous multi-year highs and has since stalled at the key level of 1.20700. The recent decline towards weekly support 1.19250 was 140 + pip fall, as we look to potentially retest the ascending trendline for a 3rd touch. The Daily support level of 1.18620 is also a downside region that is in alignment with our favoured Fibonacci level of 61.8 and can be used as a further confluence if the price was to break below the weekly support. As price action remains bullish on higher time frame analysis I will favour a rebound and bounce from this level to target new highs at 1.22000.
With the US Dollar Core Retail Sales and Core CPI due to be released on Friday, the market may be waiting for a negative result to aid in further upside on the pair. Alternatively, if better than expected data was to be release we could see a further decline and break below the ascending trendline. Investors will be eagerly anticipating Friday's announcements as they prepare for a bounce or break from this region.
Previous:- The price did, in fact, push to the upside after the previous article. The rise in the Euro was mainly due to the Federal Reserve failing to increase Interest Rates at their final meeting of the year in December. The overriding sentiment was bullish for the pair throughout the whole of 2017 and it doesn't look like stopping leading into 2018. With pricing rallying from the lows of 1.17175 to the current price at 1.20485 it has gained over 350 + pips and gone on to equal the multi-year highs of September 2017 spiking just below 1.2100. With bullish momentum looking set to continue we could expect the price to continue to the upside and reached the target region of 1.2200. A strong daily closure would indicate that the current resistance zone at 1.2030 is broken and price may well surge a further 100 pips in the coming weeks.