EUR/USD price analysis, 31 December 2020

  • EUR/USD gained traction for the third consecutive session on Wednesday amid weaker USD.
  • The prevalent upbeat market mood continued weighing heavily on the safe-haven greenback.

analytics5fed52548125f.jpg

EUR/USD reclaims 1.2300 mark for the first time since April 2018. US Congress further delayed a decision on stimulus, although $600 checks will start going out this week

EUR/USD pokes the 32-month high, flashed the previous day, while taking rounds to 1.2305, up 0.12% intraday, during early Thursday.The pair built on the previous day's bullish breakout momentum through a short-term descending trend-line resistance and gained some follow-through traction on Wednesday. The uptick marked the third consecutive day of a positive move and was exclusively sponsored by sustained US dollar selling bias.

Technical indicators remain within positive levels with uneven strength but without signs of upward exhaustion, any correction lower is an opportunity to go long .Having successfully crossed the monthly high, highest since April 2018, EUR/USD bulls are up for challenging the 32-month peak surrounding 1.2415. However, the 1.2300 round-figure may offer an intermediate halt during the surge.

From a technical perspective, the pair, so far, has managed to defend the weekly trend-line support. A convincing break below will be seen as the first sign of bullish exhaustion and turn the pair vulnerable. Some follow-through selling could lead the pair to 1.2170 mark.

The material has been provided by InstaForex Company - www.instaforex.com