EUR/USD extends gains, will it end the three-month losing streak?
|EUR/USD extended gains to fresh session high of 1.0750 as the unwinding of the Trump trade gathered pace.
The spot now trades more than 200 pips above the last month’s closing price of 1.0517. This forces us to consider the possibility of the pair snapping the three-month losing streak.
Trump related good news has been priced-in
Markets have priced-in pretty much every other positive news associated with the Trump Presidency. Consequently, the odds of a 200-pip sell-off in the EUR/USD pair are low.
More importantly, the risks associated with the Trump Presidency are yet to be priced-in. Furthermore, the US preliminary Q4 GDP is likely to show the growth rate cooled to 2.2% from the previous figure of 3.5%. Consequently, the bid tone around EUR/USD is likely to stay intact heading into the month end.
The EUR could roll over only if the EU crisis raises its ugly head in form or another.
EUR/USD Technical Levels
The spot was last seen trading around 1.0740. A break above 1.0768 (Dec 7 high), above which the spot could target 1.08 (zero figure). A violation there would expose 1.0851 (Oct 25 low). On the other hand, failure to hold above 1.0707 (38.2% of Trump rally) would open the doors to 1.0684 (10-DMA) and then to 1.0640 (10-DMA).
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