- EUR / USD extends the move lower to the 1.2050 zone.
- More weakness could lead to the 55-day moving average at 1.2037.
EUR / USD lost momentum and visited early December lows in the 1.2060 / 55 band, where some support appears to have emerged.
The continuation of the downtrend has the potential to challenge the psychological support at 1.20, although a move below this level is not favored on the short term horizon. Below 1.2000 is a Fibonacci level at 1.1976.
In the bigger picture, the constructive stance of the EUR / USD will remain unchanged while it is above the critical 200-day SMA, today at 1.1602.
On the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should support the continuation of the current long-term trend.
EUR / USD day chart
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