Prevalent Bullish Sentiment Encircles EURUSD at Years End Towards 1.2300 Level

EURUSD Price Analysis – December 31

Buyers of EURUSD are returning to the 1.2300 area at the start of the last day of 2020, however, due to the absence of any new fundamental catalyst, buyers took a short pause and refrained from new heights amid low trading volumes at the end of the year. EURUSD is hovering around 1.2285, while higher highs are still visible.

Key Levels
Resistance Levels: 1.2554, 1.2413, 1.2325
Support Levels: 1.2150, 1.2100, 1.2040
EURUSD Long term Trend: Bullish
Technically, the pair has confirmed a new bullish break of the horizontal resistance line at 1.2272 and looks set to extend its recent upward trajectory. However, the daily RSI is on the verge of breaking into the overbought zone and requires some caution for aggressive bullish traders.

On the other hand, any significant pullback can now be seen as a buying opportunity and remain capped near the 1.2150 horizontal support level. The pair could then become vulnerable to a break below the 1.2042 support level and accelerate the corrective slide towards the 1.1620 buyer confluence zone.
EURUSD Short term Trend: Bullish
The EURUSD breakout at 1.2272 of the previous day’s modified support resistance suggests a resumption of the uptrend and any fall is an opportunity for bulls. Intraday bias began to rise again. The advance from 1.0635 should now target the 61.8% forecast of 1.0635 to 1.2011 from 1.1602 at the next 1.2452 level.

On the other hand, a break of the 1.2150 support level is needed to mark a short-term peak. However, the short-term trend could remain bullish in the event of a pullback. However, sustained trading outside the near 1.2272 level and the 13 moving average gives EURUSD buyers the hope that they will be watching the uptrend line from the end of November.

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