Key Highlights
- The Euro made a nice upside move recently and it broke the 1.2200 resistance against the US Dollar.
- There was a break above a key bearish trend line with resistance at 1.2040 on the 4-hours chart of EUR/USD.
- The pair is now in a bullish zone and is eyeing more gains above 1.2200.
- China’s new loans figure for Dec 2017 released by People’s Bank of China posted 584.4B, less than the forecast of 1,000.0B.
EURUSD Technical Analysis
The Euro was seen trading in a bullish zone this past week above 1.2000 against the US Dollar. The EUR/USD pair is now extending gains above the 1.2200 resistance.
There was a bullish pattern formed above the 1.2000 level on the 4-hours chart of EUR/USD. The pair gained traction and was able to move above a key bearish trend line with resistance at 1.2040 on the same chart.
It opened the doors for more gains and the pair was able to move above the 1.236 Fib extension of the last decline from the 1.2088 high to 1.1915 low.
More importantly, the pair broke the 1.2180 and 1.2200 resistance levels. At the moment, the pair is trading a few pips above the 1.618 Fib extension of the last decline from the 1.2088 high to 1.1915 low.
These are positive signs and suggests that the Euro is trading nicely in the bullish zone above 1.2180. Should the pair continue to move higher, the next stop for buyers could be 1.2250.
On the downside, an initial support is around the 1.2180 level. However, the most important support sits near 1.2080-1.2100. The mentioned 1.2080-1.2100 area was a resistance earlier and now it is very likely to prevent declines.
The overall bias for EUR/USD is bullish above 1.2080. Similarly, the GBP/USD pair gained a lot of momentum and it was seen trading above the 1.3700 level.
On the other hand, the USD/JPY pair declined heavily and traded below the 111.00 level, which is a strong bearish signal.
