- EUR/USD extends the move lower to the mid-1.2000s.
- Further downside faces the 55-day SMA at 1.2037.
EUR/USD loses further momentum and visited the early December lows in the 1.2060/55 band, where some support appears to have emerged.
The continuation of the downtrend carries the potential to challenge the psychological support at 1.20 the figure, although a move further south of this level is not favoured in the short-term horizon. Below 1.2000 is located a Fibo level at 1.1976.
On the broader picture, the constructive stance in EUR/USD remains unchanged while above the critical 200-day SMA, today at 1.1602.
Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should underpin the continuation of the current trend in the longer run.
EUR/USD daily chart
This article was originally published by Fxstreet.com. Read the original article here.