EUR/USD: Poised to advance beyond 1.2200

The EUR/USD pair trades in the 1.2180 price zone, holding above the previous year’s high of 1.2177. Euro/dollar is technically bullish and further gains are in sight, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The US has just released November Retail Sales, which came in much worse than anticipated, falling by 1.1% in the month. The core reading, Retail Sales Control Group, printed at -0.9% vs. the 0.1% expected. Attention now shifts to the US Federal Reserve monetary policy announcement, which will include fresh economic projections. The central bank is expected to maintain rates and QE on hold this time.”

“The 4-hour chart shows that the EUR/USD pair met buyers around a mildly bullish 20 SMA, while the longer moving averages continue to advance below it. Technical indicators are easing from intraday highs, but remain within positive levels, far from suggesting an upcoming slide.”