- Summary:
- EURUSD bounces back at the highs as 1.2150 proves to be strong support. Fiscal stimulus in the United States is responsible for the new move higher.
EURUSD opened the trading week with a gap lower on fears of a new virus’ variant that spreads faster. However, it climbed back once the United States stock market opened, closed the gap, and now threatens to make a new high in thin trading.
If there is one thing that strikes the eye is the importance of the 1.2150 level. It offered strong resistance on the EURUSD move to the upside and now acts as strong support. Just like last week when the market dived on the initial Fed‘s announcement, the 1.2150 level acted as a support yesterday. In other words, if we are to expect buyers on any move to the downside, that would be the area to focus on.
As such, bears would want to see the price falling below 1.2150, and only a daily close would cement a reversal. Until then, the price action remains bullish, fueled by the new round of fiscal stimulus in the United States.
EURUSD Technical Analysis
Bulls would want to stay on the long side as the EURUSD managed to keep the series of higher highs and higher lows intact. On a move below 1.2150, bears may want to go short with a stop at the previous high and targeting a risk-reward ratio of at least 1:2.
EURUSD Price Forecast
