EUR/USD Price Analysis: Corrective downside could test 1.2200
|- EUR/USD recedes to 2-day lows in the 1.2250/45 band.
- Extra losses could test the 21-day SMA in the 1.2200 area.
EUR/USD gives away part of the recent advance beyond 1.23 the figure and retreats to the mid-1.2200s against the backdrop of the so far moderate recovery in the greenback.
Against this, EUR/USD now risks a probable move to the 21-day SMA just above 1.2200, while a deeper pullback could see the weekly low at 1.2129 (December 21) re-visited in the short-term horizon.
In the meantime, extra gains in EUR/USD are likely while above the critical 200-day SMA, today at 1.1557.
Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should underpin the continuation of the current trend.
EUR/USD daily chart
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.