After two weeks of consolidation, at the beginning of December, EURUSD has seen a breakout to the upside, carrying on it’s past bullish momentum. The Cable hasn’t seen these levels since April 2018 and thus speculation of a trend reversal towards the end of the year has been put to rest with the prices breaching a daily resistance at 1.20500.
Should the price retrace back to the daily support and broken trendline, we will also see key fibonacci levels being tested. Then, the next target would be the next daily resistance at the key level of 1.22300, which sits just slightly above of the 1.272 fibonacci level.
With the news of investors moving to risky assets for higher returns, the greenback has seen a 6% drop over the year. In contrast, the Euro has seen an 8% increase. With the current monetary policies being set, the EURUSD may continue to have its bullish run over the next few months.