EUR/USD Forecast: Advance continues on risk-on mood

Valeria Bednarik FXStreet

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

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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