When it comes to the pair, buying is mostly advised at present because of the bearish run of four consecutive bars. Bulls, who believe that this is a higher high reversal, are likely to be more optimistic about future price increases if a micro double bottom of 1.0708 is achieved. They should be wary of lower highs over the past few days, which can be seen by the mid-term ascending trend line originating from 1.0623 (61.8% of Fibonacci retracement levels, double bottom). The price has been rejecting the trend line twice (indicated by the red circles), and a new bullish run has been initiated. A new ascending trend line has been drawn from 1.0623 (61.8% of Fibonacci retracement levels, double bottom). The price has to first surpass the trend line before the long-term descending channel’s upper boundary (green square) can be attained.
The near-term outlook for the buck is favourable, as long as the main area of 1.0708 – 1.0788 stays bullish. The EUR/USD pair is currently trading between the supports at 1.0709 and the resistance at 1.0788 on the local timeframe. The range between the price of 1.0623 and 1.0849 makes trading near the upper level feasible. In other words, we can expect the test of the 1.0788 mark soon in order to re-reach the double top again. The price of Euro will attempt to climb above 1.0708 in the week beginning 11 Jan 2023. The bulls are attempting to extend the pair’s rise above 1.0708 in the following week.
