EURUSD in Search of Further Gains Around the 1.2250/1.2270 Region

EURUSD Price Analysis – December 28

Fresh optimism has propelled the EURUSD towards the 1.2250 level with some strong positive traction on Monday amid sustained USD selling bias. The pair is trying to preserve its intraday gains and in search of further gains around the 1.2250/1.2270 region. US stimulus and a post-Brexit trade deal boosted investor’s confidence.

Key Levels
Resistance Levels: 1.2350, 1.2272, 1.2200
Support Levels: 1.2150, 1.2100, 1.2040
EURUSD Long term Trend: Bullish
After its recent surge to the 1.2250 level, any subsequent retreat is likely to find some support near a one-week-old ascending trend-line, currently around the 1.2150 regions. A convincing break below might prompt some technical selling and accelerate the slide towards the 1.2011 congestion zone amid holiday-thinned trading conditions.

In the long term, the increase from 1.0635 is seen as the third phase of the trend from 1.0339 (low). Further rally could be seen to cluster resistance at 1.2554 level next. This may stay as the preferred scenario as long as the 1.1602 support level holds intact. It will meet expectations to see a topping sign around 1.2516/54 level. But sustained breach there may usher in long term bullish implications.
EURUSD Short term Trend: Ranging
EURUSD is staying in consolidation from 1.2272 and intraday bias stays neutral first. In the instance of another decline, as range trading continues, the downside may be limited by the 1.2058 support level to usher in recovery.

On the upside, though, a firm break of 1.2272 may restart a larger rally to 61.8% forecast of 1.0635 to 1.2011 from 1.1602 at 1.2452 levels next. A bullish breach beyond 1.2250 may take the pair higher towards the initial aim at 1.2325 with possible extensions at 1.24 and 1.25 levels.

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