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#1 29-12-2020 07:51:58

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3068

EUR/USD: the pair holds at a firm level

EUR/USD: the pair holds at a firm level

Risk appetite in the financial markets was reflected in particular in the Euro/Dollar currency pair which held firm yesterday. This was under the sign of a triple relief: that of the absence at this stage of adverse side effects following more than a million doses of vaccine administered in the United States, the agreement finally sealed on Brexit and the capitulation of Trump on Sunday, who finally signed the U.S. stimulus package, and gave its agreement to the signing of the finance bill, allowing the release of public funds, removing the spectre of a new shutdown at the worst time.

The trade agreement finally concluded between the United Kingdom and the European Union now puts an end to interminable negotiations. Many hard points have been removed, particularly on the thorny issue of fisheries.

On the health front, Europe began its massive vaccine campaign against the virus, raising hopes about the timetable for economic recovery.

On the statistical agenda, no macroeconomic figures of major importance are to be released today. 

As of right now, the pair is trading at $1.2244.

Since early November, the currency pair, one of the benchmark markers of risk appetite in the eyes of fund managers, has been on a steady upward trend, without running out of steam, above a 20-day moving average (in dark blue), a trend line that acts as a support. The opinion will remain positive as long as the pair remains above it.

In view of the key chart factors we have mentioned, our opinion is positive in the medium term on the Euro Dollar (EURUSD) exchange rate.

Our entry point is $1.2213. Our target price for our bullish scenario is $1.2396. In order to preserve the capital employed, we advise you to position a protective stop at $1.2129.

The expected return on this forex strategy is 183 pips and the risk of loss is 84 pips.

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



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