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Karen Jones, analyst at Commerzbank, suggests that EUR/USD starts 2020 at a critical juncture – namely the 55 week ma at 1.1202 and the 2019-2020 down channel at 1.1221.

Key Quotes

“With dips lower well supported by the 55 and 20 day ma at 1.1094/1.1063 and the DMI giving a strong buy signal this down channel is looking exposed. Above here lies the 200 week ma at 1.1360, and this represents a critical break point on the topside from a medium term perspective.”

“Dips lower will ideally hold over the 1.1066 20th December low but this is reinforced by the 1.1038 3 month support line and while above here our outlook stays positive.”

“Failure at 1.1038 would target the 1.0981 29th November low. This is seen as the last defence for the 1.0879 October low. If revisited, we would look for signs of reversal from there.”