Overview: Despite the euro’s initial gain to 1.2250 in European morning on Monday, subsequent strong retreat to 1.2192 ahead of New York open suggests further volatile swings below the peak at 1.2273 would continue with a downside bias, however, reckon 1.2131 should remain intact and yield another rise later this week. Trading was choppy at the beginning of the week and will likely extend this week. The US December Dallas Fed Manufacturing Business Index printed in 9.7.EUR/USD is neutral in the near-term but not far from this year’s high.
Major crosses held within familiar levels at the weekly opening, with the EUR/USD pair finishing the day a handful of pips above the 1.2201 level. The dollar fell at the weekly opening after the US announced that President Donald Trump signed the coronavirus-relief/government funding bill. With London off, celebrating Boxing Day, the American currency found some demand, although its bullish potential was offset by risk-appetite. US indexes reached record highs despite moderate action, boosted by stimulus news.
Technical Analysis: From the technical point of view, we can say that The US published the December Dallas Fed Manufacturing Business Index that came in at 9.7. The EUR/USD pair trades around 1.2237 at the end of the American session, offering a neutral short -term stance. The 4 hourly chart shows that buyers are showing their strong aggression in the market, while the longer moving averages maintained their bullish slopes in the market. the pair would need to advance beyond 1.2277 the years high, to turn bullish and attract additional speculative interest. On the daily chart also pair creating the bullish highs in the market. the odds are favoring the bull and gaining positive momentum in the market. The RSI creates the bullish impact in the market and MACD would above the zero lines and creating the bullish signals. The support of the level is 1.2068 followed by 1.1907 and resistance is 1.2472 followed by 1.2568.
Trade Idea: Traders are advised to buy at level 1.2240 target will be 1.2348-1.2430 and stop loss is 1.2120.
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