Recently surging to its highest level since April 2018, EUR/USD added another victim to its growing list of breached technical levels in the last few months. It has made considerable progress toward ending the multiyear decline it found itself in as a result. European Central Bank officials have already taken note but, judging by their commentary, have little interest in curtailing continued Euro strength in the near future. Still, this may become a concern in the future.
In the meantime, the steady fundamental landscape and recent technical break suggest EUR/USD may continue higher still. Since the pair trades at levels not seen in more than two years, immediate technical barriers are rather sparse. Nevertheless, prior highs from early 2018 the nearest of which does not arrive until 1.2405 may provide some influence if EUR/USD pushes higher.
Despite the recent break higher, shorter-term pullbacks are not out of the question and could serve as healthy consolidation. In the event of a reversal, early support may reside around the 1.2174, 1.2150 and 1.2100 levels. A potential “line in the sand” that, if broken, could warn of further losses rests at the December swing-low of 1.2059.
Forex, Commodities signals
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