EUR/USD Forecast: Advance continues on risk-on mood
|EUR/USD Current Price: 1.1158
- Market mood upbeat amid progress in the US-China trade deal.
- EUR/USD poised to extend its advance up to the 1.1200 region.
The EUR/USD pair is trading at a 10-day high above the 1.1150 figure, as the greenback remains the weakest currency across the board, with the decline exacerbated by the usual winter holidays’ doldrums. The market mood is upbeat, following headlines indicating that the US and China are working on a signing ceremony, where they will clinch phase one of their trade deal.
An empty macroeconomic calendar backs sentiment-related trading. The US will publish during the upcoming session the EIA weekly report on crude stockpiles and the Baker Hughes report on active drilling rigs in the country.
EUR/USD short-term technical outlook
The EUR/USD pair has advanced above the 23.6% retracement of the December rally at 1.1150, now the immediate support, recovering further from the 61.8% retracement of the same rally, which was tested last week, reflecting bulls’ dominance. In the 4-hour chart, the pair has rallied above all of its moving averages, with the 20 SMA accelerating its advance between the larger ones. Technical indicators, in the meantime, resumed their advances, now entering overbought readings. The strong momentum suggests that the pair could continue advancing during the upcoming hours.
Support levels: 1.1150 1.1120 1.1190
Resistance levels: 1.1185 1.1220 1.1260
View Live Chart for the EUR/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.