- EUR / USD falls back to two-day lows in the 1.2250 / 45 band.
- Further declines could test the 21-day SMA at the 1.2200 area.
EUR / USD erased some of the recent rally past 1.23 and fell back to the 1.2250 zone in the context of the dollar’s so far moderate recovery.
Against this, the EUR / USD now risks a likely move to the 21-day SMA just above 1.2200, while a deeper pullback could make the weekly low at 1.2129 (Dec 21) return. to be visited on the short-term horizon.
In the meantime, more gains are likely in the EUR / USD as long as it remains above the critical 200-day SMA today at 1.1557.
Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should support the continuation of the current trend.
EUR / USD day chart
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