Bulls establish above 1.22 mark, set for further advance

On Dec 17, 2020

The Euro continues to trend higher and hit the new highest levels since April 2018 in early European trading on Thursday (1.2243).
Bulls remain underpinned by rising risk appetite and Brexit optimism, with better-than-expected economic data from Germany and EU, adding to positive sentiment.
Strong bullish signals have been generated on break of key barriers at 1.1970 (bear-trendline off 1.4938, May 2011 peak) and 1.2096 (Fibo 38.2% of 1.4938/1.0340) with monthly close above these levels to confirm signals.
The pair advanced 2.5% in the first half of December, on track for the second straight strong monthly gain.
Bulls focus targets at 1.2555/1.2620 (2018 peak / 200MMA), with interim barriers marked by Fibo projections at 1.2263, 1.2323 and 1.2420.
Strong bullish momentum on weekly/monthly charts supports the action, with corrective dips on overbought conditions expected to provide better opportunities to re-enter bullish market.
Former high at 1.2177 offers immediate support, followed by rising 10DMA (1.2136) and pivotal supports at 1.2058/1.2047 (Dec 9 trough / ascending 20DMA).

Res: 1.2263; 1.2300; 1.2323; 1.2420
Sup: 1.2200; 1.2177; 1.2136; 1.2100