EUR/USD (daily chart) has once again advanced to hit a key bearish resistance trend line extending back to the mid-September 1.3170 high. This trend line has already been tested two times since that high, once in mid-October and the latest time just last week in early December. This bullish move up to resistance has occurred within an overall bullish trend that extends back to the July 1.2040 low, with the 100-day moving average also sloping up. In the event of a breakout above this trend line resistance, price could move towards a potential bullish trend continuation, with further potential resistance areas residing around the 1.3280-1.3300 and then 1.3480-1.3500 price regions. If the trend line resistance is respected with a subsequent move to the downside, the 1.2820 area could continue to serve as potential downside support within the bullish trend.
James Chen, CMT
Chief Technical Strategist
Forex trading involves a substantial risk of loss and is not suitable for all investors. FX Solutions LLC (“FXS”) is compensated through a portion of the bid/ask spread. This information is being provided only for general market commentary (based on technical analysis) and does not constitute investment trading advice. Certain information contained herein has been obtained from sources that FXS believes to be reliable; however, FXS cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is subject to change without notice. FXS has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. Past performance is not necessarily indicative of future results. No determination has been made regarding the appropriateness of any information contained herein. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated herein. FXS expressly disclaims any loss or profits that may arise from any use of the information contained in or derived from this commentary. FXS and its affiliates may engage in transactions that are inconsistent with the views expressed herein. FXS does not endorse nor is it responsible for any third-party posts related to this material.Get the 5 most predictable currency pairs