Forex technical analysis: EURUSD tests the 1.2000 level on the last day of the year

Technical Analysis

Author: Greg Michalowski | eurusd

A natural resistance level

On the last day of the trading year, the EURUSD is up testing the 1.2000 level. That is nice round number and tends to attract interest as a barometer for bullish above and bearish below.  The high for the day traded up to 1.19982 so far. 

Today, the move higher was helped by a move above the 1.1960 level. That was the November high. Yesterday, the price got within 2 pips of the level, but found sellers leaning on the test. Risk was defined and limited against the level.  

Today the low was in the 1st hour of trading around the 1.1935 level.  The price traded more sideways in the Asian session but with an upward bias.  When the price moved above the 1.1960 level, the buying momentum increased.  The 1.2000 level has helped to stall the rise over the last few hours.  

Looking at the weekly chart below, a break above the 1.2000 level, will start to target the 1.2042 level. That level was the swing low going all the way back to July 2012.  A move above that level would next target the 2017 high at 1.2092.

On the downside now, the 100 bar MA on the 5- minute chart comes in at 1.1977 and moving higher.  That MA helped to launch the price earlier in the day. The price has not been below the line since that base.   A move below would be a signal, the upside momentum is starting to fade.  Stay above and the bulls are still in full control.