December 26, 2024 at 03:59PM
The EUR/USD is edging higher, reaching a new daily high while breaking above the 50% midpoint of the trading range since the September 2022 low, which stands at 1.04053 (see daily chart).
On the hourly chart, the pair has been oscillating above and below this midpoint over the past five trading days.
Following the FOMC decision last Wednesday, the pair fell sharply to a low of 1.0343, just above the November low of 1.03322—the lowest level for the pair since 2022. Last Friday, the price tested Wednesday’s low but found strong buyers, propelling the pair back higher. Friday’s high stalled at the lower boundary of a swing area between 1.0448 and 1.0461.
Currently, modest resistance is seen at 1.0424, followed by the falling 200-hour moving average at 1.04384. On the downside, the 100-hour moving average at 1.03976 has acted as a pivot point recently, with the price moving above and below it multiple times. A sustained move back below this level would shift the technical bias toward the downside. For now, the pair’s near-term direction hinges on its ability to sustain gains above the midpoint and challenge the resistance levels ahead.
This article was written by Greg Michalowski at www.forexlive.com.
