1.2200 level is critical as:
- It corresponds to Fibo 50.0 retracement level (of 2000-2008 rally)
- EMA100 & EMA200 are aligned horizontally, and are very close to each other. Price is testing to break both of these lines
- Meanwhile EMA10 came from below to cross EMA50
- is almost breaking level 60 (for the first time since 2008)
- indicator stays in overbought region, which is a very signal
- Momentum is strongly upside and targets to reach 2008-2012 highs
Technically EUR_side is much more stronger now, and USD_bulls has to do something before it is too late. Otherwise, indicators reveal a long-term EUR rally.
Rest of January and the monthly closing level shall show us the outcome.