NEW YORK (Forex News Now) – As of around 5:20 P.M. GMT on Friday, the euro had jumped to a 6-month high against the dollar, breaking above the 1.37 mark in currency market trading.
This is what the analysts say about the heavily traded currency pair in the near-term:
According to FXstreet, the EUR/USD momentum is firmly “pointing north,” both on 1- and 4-hour charts, “keeping the downside quite limited despite extreme overbought readings,” which the pair has been ignoring for some time now.
In the site’s EUR USD analysis, the currency pair’s next strong resistance area is located at 1.3820/30 price zone.
Forexcycle, meanwhile, points out that EUR/USD has stayed above a rising trend line on 4-hour chart, remaining in uptrend from 1.2643. But the realtime forex news site notes that in the event of a clear break below the trend line support “could indicate that a cycle top is being formed,” in which case a deeper decline could be seen to the 1.34 area.
In a report aimed at technical analysis trading, Actionforex, for its part, states: “Price actions from 1.6039 a correction to long term rally from 0.8223 and could have finished with three waves down to 1.1875 already.”
The site sees the short term outlook as staying bullish as long as psychological level at 1.3 holds.