EUR/USD: Sustained move beyond 1.2270-75 to set the stage for further near-term gains

The EUR/USD pair added to the previous day's modest gains and continued scaling higher through the first half of the trading action on Tuesday. FXStreet’s Haresh Menghani awaits a symmetrical triangle breakout for a fresh bullish impetus.

Key quotes

“Trading volumes are likely to remain thin during the holiday-shortened week. EUR/USD is at the mercy of the USD price dynamics and the broader market risk sentiment. That said, developments surrounding the coronavirus saga and US stimulus headlines might still infuse some volatility. This could eventually influence the pair and produce some meaningful trading opportunities.”

“EUR/USD was now seen making a fresh attempt to build on the momentum beyond another descending trend-line, which constitutes the formation of a symmetrical triangle. Some follow-through buying beyond YTD tops, around the 1.2270-75 region, will reaffirm the constructive outlook and pave the way for additional gains. The pair might then surpass the 1.2300 mark and aim to test the 1.2340 hurdle.”

“Any meaningful pullback might continue to find decent support near the 1.2200 mark (ascending trend-line). Sustained weakness below might prompt some technical selling and accelerate the slide further towards the 1.2130-25 congestion zone. Failure to defend the mentioned support levels might negate the near-term positive outlook and turn the pair vulnerable to break below the 1.2100 mark, towards the next relevant bearish target, around the 1.2060-55 area.”