EUR/USD Sets New 2020 High, Oil Inches Towards $50
- EUR/USD surpassed 1.2000 and traded to a new 2020 high at 1.2272.
- A major bullish trend line is forming with support near 1.2180 on the 4-hours chart.
- Gold price rallied towards $1,900, and crude oil price is approaching the $50 resistance.
- The Euro Zone Consumer Confidence could remain at -17.6 in Dec 2020 (Preliminary).
EUR/USD Technical Analysis
In the past few days, the Euro followed a bullish path above 1.2000 against the US Dollar. EUR/USD even broke the 1.2200 resistance to move further into a positive zone.
Looking at the 4-hours chart, the pair climbed towards the 1.2280 level. A new 2020 high was formed near 1.2272, and the pair settled well above the 200 simple moving average (green, 4-hours) and the 100 simple moving average (red, 4-hours).
Recently, there was a minor downside correction below the 1.2250. The pair even spiked below the 50% Fib retracement level of the upward move from the 1.2124 swing low to 1.2272 high.
On the downside, there are many supports forming near 1.2180. There is also a major bullish trend line forming with support near 1.2180 on the same chart. The 61.8% Fib retracement level of the upward move from the 1.2124 swing low to 1.2272 high is also near the 1.2180 zone.
On the upside, an initial resistance is near the 1.2220 and 1.2235 levels. The next major resistance is near the 1.2375 level, above which the price could rally towards 1.2350.
Overall, the greenback is under a lot of selling pressure. There were strong bullish moves in AUD/USD, NZD/USD and gold. More importantly, crude oil price is now approaching the main $50 resistance level.
Upcoming Economic Releases
- Chicago Fed National Activity Index Nov 2020 – Forecast 0.80, versus 0.83 previous.
- Euro Zone Consumer Confidence Dec 2020 (Preliminary) – Forecast -17.6, versus -17.6 previous.