Categories: Markets

The 1.20 zone still limits the upside

EURUSD
  • EUR / USD smiles back after two pullbacks in a row.
  • So far, gains are still capped by the key 1.20 barrier.

The recent EUR / USD rebound from this year’s lows near 1.1830 (March 9) encountered a stiff barrier in the vicinity of the 1.20 psychological hurdle for the time being, prompting a corrective stretch thereafter.

The inability to retest / exceed the 1.20 area in the short term could allow the offered bias to continue and prompt the EUR / USD to attempt another visit to the 2021 lows in the 1.1835 / 30 band (March 9) . This zone of lows is reinforced by the proximity to the key 200-day SMA, today at 1.1834.

Below the latter, potential losses are expected to pick up more strength with the next target at the 2008-2020 support line at the 1.1600 area. This scenario, however, is not favored at the moment.

EUR / USD day chart

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