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EUR/USD Price Review:
- Still inside the positive territory consolidating above the 1.1100 handle.
- However, chances for a corrective move are still on the table.
EUR/USD is challenging a strong supply region
The new year is looming, noticed at the start of the week across all the major pairs, including the EUR/USD. The positive stance remains alive, and it’s consolidating the price action above the 1.1100 handle. A supply zone is being challenged across the board, with the pair trapped inside this area, waiting for further clues to define its overall trend.
There is also an ongoing bullish crossover of the 50 and 200 SMA at the 4H chart, called “Golden Cross”. Which signals short and mid-term gains.
The resistance area of 1.1177 is capping the gains and it seems like a line in the sand is set to limit the advancement. However, if it manages to give up in favour of the bulls, the focus will shift towards the 1.1230 threshold.
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Key resistance in focus
This area guards the 1.1280 level, which is the next critical hurdle to break as it has been setting the tone for the bulls. Which historically lose steam upon being reached after a strong rebound in a key zone (bullish trend line).
The 200 SMA is providing dynamic support over a short-term basis, especially in the first week of December.
1.10 on the cards?
To the downside, however, there is a high risk that a deep corrective move could happen. Once it breaks below 1.1102, EUR/USD will attempt a decline to test the mentioned trend line, which makes a confluence with the support area of 1.1014.
If that level gives up in favour of the bears, the bias will extend its fall towards the 1.0946 level. Beyond such a region, all eyes will shift to the lows from October around 1.0880. According to the technical oscillators, the RSI is maintaining its neutral tone around the 50 zone, while momentum is pointing upwards.