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#1 16-12-2019 09:40:31

Admin & Trader
From: Paris - France
Registered: 21-12-2009
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EUR/USD: possibilities of a rise remain intact despite Friday decline

EUR/USD: possibilities of a rise remain intact despite Friday's decline; signals to watch for

Last week was eventful for the EUR/USD pair, with a sharp rise on Thursday evening due to the Conservative Party's victory in the UK general elections, then a correction on Friday, as the dollar took advantage of the announcement of a Chinese-American trade agreement, which strengthened weekend profit taking on the pair.

For the record, after a low point towards 1.1049 at the beginning of the week, the EUR/USD rose to a high of 1.12 on Thursday evening, before ending the week just above 1.11.

Overall, the EUR/USD pair therefore posted a bullish balance sheet last week despite Friday's correction, which did not call into question the pair's upward bias.

From a graphical point of view, it should be recalled that the 100-hour moving average had stopped Friday's correction. Last night, the pair opened higher, and continues to gain ground this Monday, with a peak at 1.1150 for the moment.

In the short term, this threshold will be considered as a key resistance level, given that the 200-day moving average is currently on this threshold. A return over this area could therefore result in a new test of 1.12.

On the downside, the 100-hour moving average at 1.1120, the psychological threshold of 1.11 and the 100-day moving average at 1.1063 will be the first key support levels to monitor.

Finally, with regard to Monday's economic calendar, the preliminary PMI indices for December in Europe will be monitored this morning, which could have a significant impact on trade.

Markets are also waiting for more details on last week's China-USA agreement, with several grey areas remaining.

Currently, the EUR/USD pair is trading at 1.1132 on the forex.

Hourly EUR/USD chart

"Anything worth having is worth going for - all the way." - J.R. Ewing



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