EUR/USD Technical Analysis Update For 4th December
(Forex-FX-4X.com, Euro/Dollar Technical Outlook, 4th December)
- The EUR/USD gained (+ 0.60%) on the daily basis for Monday – with a higher close printed for the fourth consecutive trading session – and is now trading at a six-week high after breaking above the 1.3000 handle.
- Continued signs of an increasing appetite for risk were found on Monday, with Chinese manufacturing data along with news from Spain and Greece seeing the German DAX and French CAC reaching their respective 52-week highs on the intra-day basis. Spanish and Italian bond yields have also declined which benefited the 17 nation European currency during early week trading.
- The euro/dollar upside came as the greenback was broadly weaker and lost ground versus its major currency counterparts, including sterling (GBP/USD +0.53%), Japanese yen (USD/JPY -0.34%) and the Swiss Franc (USD/CHF -0.31%).
- The past three daily attempts to move above EUR/USD 1.3000 had met with balanced selling pressure, however the bulls were firmly in control on Monday, taking price as high as 1.3075 before closing just above 1.3050. The upside move also marks a close above the longer term descending trend line, originating from the 4/5/11 1.4939 highs.
- Price is now trading just under a possible third touch of the embryonic trend line located around 1.3093. Any upside would need to contend with this potential resistance area in the first instance. Any prolonged upside move would see price at the 17/10/12 1.3140 area previous swing high point, with the 1.3170 17/9/12 area highs in focus if the EUR/USD can move markedly higher in the coming sessions.
- Potential support may be experienced around the following: the 1.3020 area previous daily highs, the 1.3000 psychological level and a retest of the descending trend line which is currently located around 1.2960.
EUR/USD Technical Report, Outlook and Analysis For 4th December