- EUR / USD tests the 21-day moving average around 1.2210 on Friday.
- Further declines could target the 1.2130 region.
EUR / USD further extends momentum to the downside, testing and bouncing from the 21-day moving average near 1.2210 on Friday.
Against this, the EUR / USD downward correction could have more stretches to go and a move to the weekly low at 1.2129 (Dec 21) should not be ruled out on the short-term horizon.
In the meantime, more gains are likely in a broad outlook for EUR / USD as long as they are above the critical 200-day SMA, 1.1564 today. 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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