EUR/USD Rates To Watch Following Break Of Monthly Opening Range

With that said, the consolidation from the September high (1.2011) appears to have been exhaustion in the EUR/USD rally rather than a change in trend as the crowding behavior from earlier this resurfaces, and the exchange rate may continue to appreciate as long as the Relative Strength Index (RSI) tracks the upward trend from November to hold in overbought territory.




Image of EUR/USD rate daily chart

Source: Trading View

  • Keep in mind, a ‘golden cross’ materialized in EUR/USD towards the end of June as the 50-Day SMA (1.1900) crossed above the 200-Day SMA (1.1479), with both moving averages tracking a positive slope ahead of 2021.
  • The correction from the September high (1.2011) proved to be exhaustion in the bullish price action rather than a change in trend following the string of failed attempts to close below the 1.1600 (61.8% expansion) to 1.1640 (23.6% expansion) region, with the Relative Strength Index (RSI) highlighting a similar dynamic as it broke out of the downward trend carried over from the end of July to recover from its lowest readings since March.
  • The break/close above the 1.1960 (38.2% retracement) to 1.1970 (23.6% expansion) region has pushed EUR/USD to a fresh yearly highs in December, but need a close above the Fibonacci overlap around 1.2220 (50% retracement) to 1.2270 (161.8% expansion) to open up the 1.2320 (23.6% retracement) to 1.2370 (61.8% expansion) region.
  • The April 2018 high (1.2414) comes up next followed by the 1.2430 (50% expansion) area.
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