Welcome to a model spankin’ new buying and selling 12 months, errbody!

Prepared to start out your buying and selling 12 months with a bang?

We’ve bought our eyes on EUR/USD presumably pulling again to a earlier resistance zone:

EUR/USD 4-hour Foreign exchange Chart by TV

As you possibly can see, the second half of December has been robust for the euro and weak for the U.S. greenback as extra merchants worth within the Fed presumably loosening its financial insurance policies before the European Central Financial institution (ECB) would.

EUR/USD, which bounced from the 1.0725 ranges, shot up all the way in which to the 1.1125 space earlier than EUR bears confirmed up.

Is EUR/USD executed making new highs? Or are the euro bears simply taking a breather?

Keep in mind that directional biases and volatility circumstances in market worth are sometimes pushed by fundamentals. If you happen to haven’t but executed your fundie homework on the euro U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on day by day elementary information!

Or in the event you simply bought again to your buying and selling desk after the vacations, you may as well try our 2024 FX Outlook to see what you possibly can count on for the 12 months forward.

For now, a transfer to the 1.1000 psychological space could also be within the works particularly as the extent traces up with the S1 Pivot Level line AND the mid-channel help within the 4-hour time-frame.

Coincidentally, 1.1000 can be not too removed from the potential 100 and 200 SMA dynamic help ranges.

A bounce from the mid-channel space may open EUR/USD to a transfer again to its 1.1125 earlier highs close to right now’s R1 (1.1120) Pivot Level resistance line. We may even see EUR/USD making new swing highs if we see sufficient momentum within the subsequent few days.

After all, it’s additionally doable that EUR/USD bears are simply getting began. If the pair breaks and stays beneath the 1.1000 degree that we’re eyeing, then EUR/USD may head for decrease inflection factors like 1.0900 or 1.0850 earlier than seeing sustained shopping for stress.