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EUR/USD rises for the second day in a row but faces strong resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The euro is about to end the day modestly higher against the US dollar on a calm trading session, posting the second daily gain in a row and the fifth out of the last six days.

    EUR/USD continues to rise after the retreated from 1.1056 found support at 1.0800 and the 20-day MA that currently stands at 1.0870. The short-term outlook continues to favor the euro.

    Important resistance ahead

    The upside has two important resistance ahead. The first one is the 1.1000 area, that today when the pair approached it, lost momentum, and pulled back; it kept the intraday bullish tone after being able to hold above the 20-hour moving average. Above 1.1000, the next area to watch is the 1.1050, that capped the euro several times during December and where the 100 and 200-day MA are seen; a break higher could open the doors for more gains.

    On an intraday perspective, to the downside, a consolidation below 1.0970 (20-hour MA) could weaken the euro and then support is seen at 1.0955 (European and American session low) and then 1.0940 (daily low). Limited price action is expected for the coming hours and also during the rest of the week.
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