EURUSD is completing a tremendous upside movement over the last three days and has appreciated more than 1.4% since December 27. The new year has found the pair extending its upside pressure and opening today’s daily session with a gap up, posting an almost 4-month high at 1.2038.
Also, the price opened the door for a gaining week and on the upside, the next resistance comes in at 1.2090, while on the bigger picture, we could easily see a run until the 1.2400 strong psychological level. The aforementioned obstacle is the 161.8% Fibonacci retracement level of the last big down-leg with high at 1.1615 and low at 1.0340.
Conversely, support lies at the 1.1960 level where a violation could push the price further down at the 1.1710 barrier. It is worth mentioning that the world’s most traded currency pair needs to go through the 50- and 100-day simple moving averages before it slips.
Remaining on the short to medium-term timeframe the Relative Strength Index (RSI) has turned sharply higher and is approaching the overbought area, while the MACD oscillator is endorsing the rising move too on price as it is holding above its trigger and zero lines.
All in all, EURUSD faces further upside pressure in all timeframes. The price recorded the second bullish month in a row as well as the second consecutive green week successfully surpassing the 1.1960 barrier.