March 12, 2021 2:42 AM PST
The US Dollar enjoyed a bout of strength to begin the year as EUR/USD
endured a pullback toward support. While the brief reversal in price
was hard to deny, it can be argued there were few changes in the
underlying fundamental landscape to drive such a move. To be sure, a
decline in risk appetite and damaged sentiment likely played a role as
investors piled into the safety of the Greenback, but with sentiment
repaired USD could face renewed pressure.To get more news about [url=https://www.wikifx.com/]WikiFX[/url], you can visit wikifx.com official website.
Further still, the technical EUR/USD landscape looks encouraging.
While recent weakness may have spooked some bulls, it might be viewed as
mere consolidation before a continuation higher by others. To that end,
the series of higher-highs and higher-lows dating back to March remains
intact and EUR/USD trades above a plethora of longer-term moving
averages.
Much of the same can be seen on the daily chart. Trading
narrowly beneath the 50-day moving average, golds recent breakout of
the descending channel may allow it to take aim at overhead resistance.
An imminent MACD crossover beneath the 0 line with price above the 200
exponential moving average lends further bullish evidence.
Initial areas of interest might reside at the January 2021 high near
1.2349 followed by resistance slightly higher around 1.2400. Northward
still resides a series of horizontal trendlines that may look to keep
price contained so trimming exposure at – or before - these levels might
be prudent.
Conversely, the area slightly beneath 1.2000 might serve as an
invalidation zone that if price were to breach before pushing higher,
could undermine the shorter-term trade setup altogether. Another risk is
continued consolidation around the 50-day simple moving average. That
said, EUR/USD appears tilted to the topside and IG client sentiment data
reveals retail traders remain net-short the currency pair. Since we
typically take a contrarian view to crowd sentiment, retail positioning
might suggest EUR/USD will climb higher in the days ahead. Follow
@PeterHanksFX on Twitter for updates on this pair.
The US Dollar enjoyed a bout of strength to begin the year as EUR/USD
endured a pullback toward support. While the brief reversal in price
was hard to deny, it can be argued there were few changes in the
underlying fundamental landscape to drive such a move. To be sure, a
decline in risk appetite and damaged sentiment likely played a role as
investors piled into the safety of the Greenback, but with sentiment
repaired USD could face renewed pressure.To get more news about [b][url=https://www.wikifx.com/]WikiFX[/url][/b], you can visit wikifx.com official website.
Further still, the technical EUR/USD landscape looks encouraging.
While recent weakness may have spooked some bulls, it might be viewed as
mere consolidation before a continuation higher by others. To that end,
the series of higher-highs and higher-lows dating back to March remains
intact and EUR/USD trades above a plethora of longer-term moving
averages.
Much of the same can be seen on the daily chart. Trading
narrowly beneath the 50-day moving average, golds recent breakout of
the descending channel may allow it to take aim at overhead resistance.
An imminent MACD crossover beneath the 0 line with price above the 200
exponential moving average lends further bullish evidence.
Initial areas of interest might reside at the January 2021 high near
1.2349 followed by resistance slightly higher around 1.2400. Northward
still resides a series of horizontal trendlines that may look to keep
price contained so trimming exposure at – or before - these levels might
be prudent.
Conversely, the area slightly beneath 1.2000 might serve as an
invalidation zone that if price were to breach before pushing higher,
could undermine the shorter-term trade setup altogether. Another risk is
continued consolidation around the 50-day simple moving average. That
said, EUR/USD appears tilted to the topside and IG client sentiment data
reveals retail traders remain net-short the currency pair. Since we
typically take a contrarian view to crowd sentiment, retail positioning
might suggest EUR/USD will climb higher in the days ahead. Follow
@PeterHanksFX on Twitter for updates on this pair.