EURO STILL BULLISH ABOVE 1.2200
The euro currency has soared to a new 3-year trading high against the U.S dollar, breaking above the 1.2300 handle, hitting 1.2323, as the U.S dollar index fell sharply overnight. Price-action has now reversed back towards the 1.2250 level, as the EURUSD pair quickly retreated from extremely overbought conditions. Going forward, traders now look to the release of Eurozone CPI inflation figures for December and the Federal Reserve Beige Book, which reports the current situation of the United States economy.
The EURUSD pair remains bullish while price-action trades above the 1.2200 level, further upside towards 1.2258 and 1.2323 appears likely.
Should price-action on the EURUSD pair start to move below the 1.2200 level, a sell-off towards the 1.2156 and 1.2093 levels seems likely.