EUR/USD rallied vigorously in November, but has started to retrace some of that advance in recent days, with bearish pressure easing as prices tested the 200-day simple moving average. It is important for bulls to defend this technical indicator, which currently symbolizes support; a failure to do so could result in a decline toward 1.0765, followed by 1.0650.
On the flip side, if the common currency regains the upper hand against the greenback and stages a meaningful comeback, technical resistance looms at 1.0960 – the 61.8% Fibonacci retracement of the July/October decline. Sustained strength could lead to revisiting November's peak, followed by a move towards horizontal resistance at 1.1080 upon a breakout.
On the flip side, if the common currency regains the upper hand against the greenback and stages a meaningful comeback, technical resistance looms at 1.0960 – the 61.8% Fibonacci retracement of the July/October decline. Sustained strength could lead to revisiting November's peak, followed by a move towards horizontal resistance at 1.1080 upon a breakout.
