At the beginning of the Asian session, the EUR/USD pair is trading at 1.2285 which is very close to the new yearly high of 1.2293. The pair remains strongly bullish and slowly continues its rise.
The 4-hour chart shows that the price remains above the 21 moving average and is trading within an uptrend channel. The eagle indicator is showing a bullish signal, approaching the 90 zone which represents overbought conditions.
The EUR/USD pair has been supported by the weakness of the US dollar index (USDX). The US dollar is close to covering the GAP that was formed at the 89.34 level. The weakness of the US dollar is likely to continue which could drive the euro/dollar pair higher to 1.2329.
On the 4-hour chart, you can see that EUR/USD remains above the 21-day SMA. We can continue buying the pair only if it remains holding above or bounces back from this area with the targets at 1.2329, +2/8 of Murray.
The EUR/USD pair has reached a new high of 1.2293. It is likely to pull back to the 1.2230 zone before developing a further bullish rally.
We recommend buying after a technical correction to the 1.2230 level where the 21 SMA is located, or when the price bounces to the bottom of the uptrend channel.
Trading tip for EUR/USD for December 30 – 31
Buy if the price rebounds at 1.2255, with take profit at 1.2290 and 1.2329, stop loss below 1.2220.
Buy if the pair rebounds around 1.2225 (SMA 21), with take profit at 1.2268 (+1/8 of Murray) and 1.2329, stop loss below 1.2190.
