The euro currency was down over 0.63% into the yearly close.The declines come amid thin trading and the US dollar posting a modest rebound. EUR/USD has kicked off 2021 by resuming its gains. Markets are concerned with the rapid spread of coronavirus and the slow deployment of vaccines.
The euro currency has been consolidating near the rising trend line over the past few days. While price action was making modestly higher highs, the pace of gains was gradual. The slowing momentum has led to a decline off the trendline consolidation
EUR/USD eased on profit-taking after hitting a year's high at 1.2309. The daily chart shows that the latest decline seems corrective, as the pair remains above primary trend line, which maintain their bullish bias.
To the upside, bulls need to move the price back above the critical 1.2300 round figure mark to encourage buyers. The EURUSD pair is only bullish while trading above the 1.2300 level, key resistance is found at the 1.2300 and 1.2400 levels.
However, bearish MACD divergence suggests that the exchange rates rally since November could be running out strength . The MACD histogram's notable decline in recent days also hints a fading bullish momentum. Technical analysis shows that the EURUSD pair is only bearish while trading below the 1.2210 level, key support is found at the 1.2170 and 1.207 levels.
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