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  • EUR/USD clinches new 4-month peaks in the 1.2250 zone.
  • Further up is located the YTD tops in the mid-1.2300s.

EUR/USD extends the rebound to new multi-month highs around 1.2250, just to spark a corrective move soon afterwards on Wednesday.

The buying bias remains well and sound for the time being. Against this backdrop, there are no hurdle of note until the YTD peaks in the 1.2350 area (January 6).

Furthermore, the constructive stance on EUR/USD is forecast to remain intact as long as it trades above the 200-day SMA, today at 1.1957.

Of note, however, is that the daily RSI still did not confirm the recent peaks, which could be indicative of a bearish divergence and therefore a prelude to a corrective move in the short-term.

EUR/USD daily chart

 

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