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Denis Sergienko • 2022-12-09

EURUSD grinds higher inside three-week-old bullish channel

EURUSD grinds higher inside three-week-old bullish channel

EURUSD is likely to end the two-week-old winning streak as traders brace for key consumer-centric data from the US. However, an ascending trend channel from November 15 portrays the short-term bullish bias of traders. That said, the monthly high surrounding 1.0600 and the stated channel’s top near 1.0620 limits the quote’s immediate advances. In a case where the pair defies the bullish chart pattern by crossing the 1.0620 hurdle, the upward trajectory could aim for May’s high near 1.0785.

On the downside, the 100-SMA level of 1.0400 restricts the nearby downside of the major currency pair, a break of which will highlight the channel’s support line surrounding 1.0380. Should the EURUSD bears manage to conquer the 1.0380 support, the odds of witnessing a slump toward the 200-SMA level near 1.0200 can’t be ruled out. However, tops marked during late October and early November close to 1.0100-0090 offer a strong support zone to the sellers.

Overall, EURUSD remains firmer inside the bullish chart formation but the upside room appears to be limited.

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