The American dollar has had another bad week. The EUR/USD pair peaked at 1.2272 and has now settled a handful of pips below it. According to FXStreet’s Chief Analyst Valeria Bednarik, the bullish momentum is set to continue in the holiday season.
Key quotes
“Year-end mood kicks in as winter holidays are around the corner. Market’s movements could be wider than usual at this time of the year for a change, amid combined low volumes and big news. Whether the EU and the UK clinch a deal or not, the post-Brexit trade relationship will be defined in the upcoming days. The same goes for a US stimulus package, as the government will run out of funding by the end of this Friday. Lawmakers are likely to work sooner than later on funding and stimulus altogether.”
“The weekly high was set at 1.2272, with the 1.2300 figure now providing an immediate resistance. Beyond this last, the pair has room to extend its advance towards 1.2413, April 2019 monthly high. Beyond this last, the 1.2500 threshold is the next natural target.”
“The former year’s high at 1.2177 is the first support level, followed by 1.2100. A break below this last exposes 1.2000, although buying interest will likely take its chances on an approach to it.”
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