From a technical perspective, EUR/USD has room to continue advancing. The weekly chart shows that the pair continues to develop far above a now bullish 20 Simple Moving Average (SMA), which currently develops at around 1.0100. The 100 SMA heads south below the 200 SMA, both far above the current level. Finally, technical indicators retain gains near overbought levels, with the Momentum currently consolidating and the Relative Strength Index (RSI) aiming north at around 62.

According to the daily chart, bulls are also in control of EUR/USD. The pair keeps developing well above all of its Moving Averages, with the 20 SMMA heading firmly north above the longer ones. Technical indicators, in the meantime, have lost their directional strength but consolidate well above their midlines, indicating the absence of selling interest.

EUR/USD topped at 1.0786 in May, and market players will be looking for a bullish breakout of that level to keep adding longs. Once above it, the path is quite clear towards 1.0900. Corrective declines amid profit-taking can push the pair down towards the 1.0500/30 price zone, although buyers will likely reappear in the region.

EUR/USD will lose ground in the near term. However, it seems that once again, price action caught the speculative interest off guard. In the weekly perspective, 50% of the polled experts are looking for a potential slide below the 1.0600 mark, although in average, the pair is seen around it.

In the monthly perspective, only 9% of experts are looking for higher highs although there is a wide accumulation of bets in the 1.0400/1.0600 price zone, while those looking for another leg below parity continue to decrease.

Finally, in the quarterly perspective, most targets accumulate between 1.0400 and 1.1200, in line with a sustained advance in the months to come.

EURUSD preparing solid grounds for bearish maneuvers

Dec 17 2022

Stop Loss -0.70%

Holding time 11d10hr

1.06278

Entry price

1.07020

Stop loss price