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  • EUR/USD keeps the bid note despite faltering around 1.2300.
  • Above 1.2300 comes in monthly peaks at 1.2413 and 1.2476.

EUR/USD keeps the bullish stance unchanged despite the recent move up run out of steam in the 1.2300 neighbourhood.

The constructive bias in EUR/USD, therefore, remains unaltered and allows for the continuation of the current leg higher in the short-term horizon. However, the proximity of the  overbought territory carries the potential to spark occasional corrections. These are expected to meet initial support at the weekly low at 1.2129 (December 21).

In the meantime, a breakout of recent tops just above 1.2300 should pave the way for extra gains as well as a potential move to 1.2413 (April 2018 high) ahead of 1.2476 (March 2018 high).

In the meantime, extra gains in EUR/USD are likely while above the critical 200-day SMA, today at 1.1544.

Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should underpin the continuation of the current trend.

EUR/USD daily chart