EURUSD Upside Range Proceeds As Bulls and Bears Tussle at 1.2300 Level

EURUSD Price Analysis – January 4

EURUSD continues to rally in an attempt to break higher as bears and bulls tussle around 1.2300. The dollar is losing ground before the opening of the American session. The number of new covid variants registered and the slow spread of the vaccine together with the early elections in Georgia could bring the pair down.

Key Levels
Resistance Levels: 1.2554, 1.2413, 1.2325
Support Levels: 1.2150, 1.2100, 1.2040
EURUSD Long term Trend: Bullish
At the moment, the pair is gaining 0.68% at 1.2295 and a breakout of 1.2310 (2020 high Dec.30) would target 1.2413 en route to a 1.2476 high level. On the other hand, the next support emerges at 1.2150 level seconded by 1.2042 low level and finally 1.1602.

In a broader context, the increase from 1.0635 is seen as the third trend cycle from the 1.0339 (low) level. At the next level at 1.2011, a further rally towards cluster resistance can be seen. This may stay as the preferred scenario as long as the 1.1422 resistance altered into support stays intact.
EURUSD Short term Trend: Bullish
While the support at 1.2150 is maintained, further growth in EURUSD is expected. The current rally from 1.0635 should aim the forecast for 61.8% from 1.0635 to 1.2011 from 1.1602 to 1.2452 next. However, given the bounce condition in the 4 hours RSI, a break of 1.2150 support should confirm a short-term top.

The intraday slope can be changed back downward for a steeper pullback. On the 4-hour chart, the pair has corrected below the support levels 1.2272 and 1.2214. There was also a break below the major bullish trendline with support at 1.2240. On the other hand, a breakout of 1.2150 would indicate that the euro may consolidate and trade sideways for some time.

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