Search ForexCrunch
  • EUR/USD keeps the bid note and surpasses the 1.2300 level.
  • Further up comes in monthly peaks at 1.2413 and 1.2476.

EUR/USD regains further traction and manages to quickly leave behind the key barrier at 1.23 the figure on Wednesday.

Against this, EUR/USD is now expected to approach the 1.2400 mark in the short-term horizon. Further north of this hurdle aligns 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 1.1551.

While further gains stay well on the table, 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).

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