EUR/USD TECHNICAL HIGHLIGHTS:
- The EUR/USD forex market on the daily chart has rallied for 2 months
- Consolidation pattern set up to lead to another run
- The 1.2500-area may be where it ends up relatively soon
The euro currency has fallen against the US dollar after bulls failed to break above the current monthly high, around the 1.2170 area. Failure to overcome the 1.2070 area in the near-term could result in a correction back towards the consolidation range between 1.2170-1.2070.
Euro/dollar rebound near the uptrend support line on last Thursday and is benefiting from upside momentum on the four-hour chart. Moreover, the Relative Strength Index is around 50, outside overbought conditions.
Resistance awaits at monthly high 1.2170 region (2020 peak) , followed by 1.2200 and 1.2250, lines that played a role back in 2018. Looking to the left on the charts, the next big level of resistance isn't until the February 2018 high around 1.2500. Next support awaits at 1.2070, which was a cushion on Thursday . It is followed by 1.990, which a swing high resistance during November.
To flip the currently bullish bias, an aggressive thrust lower is needed, and one that pushes price below the breakout point of 1.2070. The EURUSD pair is clearly bearish while trading below the 1.2070 level and only bullish while trading above the key resistance is found at the 1.2170.
