Larger bulls are taking a breather
The Euro is down around 100 pips in European trading on Thursday after bulls stalled on approach to Wednesday’s new multi-month high at 1.2349.
The US Senate certified Biden’s victory, with Democrats winning control of the US Senate and clearing way for passing Biden’s agenda that temporarily lifted the dollar.
Stubbornly weak EU inflation and significant drop in bloc’s retail sales in November, contributed to fresh Euro’s weakness.
Studies on 4-hr chart weakened and warn of further easing, although dips were so far held by initial support at 1.2245 (rising 10DMA), with ability to hold above here to keep near-term action biased higher.
Extension below pivots at 1.2209 (20DMA) and 1.2152 (30DMA) would put larger bulls on hold deeper pullback towards key supports at 1.2064/58 (Fibo 38.2% of 1.1602/1.2349 / Dec 9 trough) and psychological 1.20 support.
Res: 1.2272; 1.2289; 1.2309; 1.2349
Sup: 1.2245; 1.2209; 1.2173; 1.2152