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  • EUR/USD keeps the daily range around the 1.2200 area.
  • The upside is now limited by the 1.2265/70 band.

EUR/USD managed to bounce off last week’s lows in the proximity of 1.2130, regaining at the same time the 1.2200 zone.

Despite the drop to the 1.2130 area, the downside pressure in EUR/USD looks well contained in the vicinity of 1.2170, where is located a Fibo level (of the November-January rally).

The short-term support line (off March lows) seems to underpin the positive momentum in the pair and therefore allow  for extra gains. That said, above 1.2270 there is the chance of an assault to the 1.2300 hurdle in the short-term horizon. Further north, another visit to the YTD peaks in the 1.2350 area (January 6) should not be ruled out.

On the broader view, the constructive stance on EUR/USD is forecast to remain intact as long as it trades above the 200-day SMA, today at 1.1972.

EUR/USD daily chart