The euro is up on Thursday due to low holiday volume. The single currency is mainly supported by a weaker US dollar and increased demand for riskier assets, but speculators are keeping an eye on Brexit developments.
Britain and the European Union were reportedly on the verge of closing a trade deal, raising hopes that the UK could avoid a turbulent economic start at the end of the year.
At 12:18 GMT, EUR / USD is trading at 1.2194, up 0.0011 or + 0.09%.
The dollar was retreating in lean trading during the holidays, hopes of a deal that would protect about $ 1 trillion in annual cross-channel trade against tariffs and quotas reduced demand for the more secure assets, a writes Reuters.
Technical analysis of the daily swing chart
The main trend is up according to the daily swing chart. A trade passing through 1.2059 will change the main trend downward. A move to 1.2273 will signal a resumption of the uptrend.
The minor trend is also up. A trade passing through 1.2130 will change the minor downtrend. It will also change the momentum to the downside.
The first minor range is from 1.2273 to 1.2130. His level of 50% at 1.2202 is currently overlapped.
The second minor range is 1.2059 to 1.2273. His 50% level at 1.2166 has provided support over the past two sessions.
Daily Swing Chart Technical Forecasts
Light trade is expected today due to the holidays. If there is a move in either direction, it will likely be determined by the trader’s reaction to the 50% level at 1.2202.
A sustained move above 1.2202 will indicate the presence of buyers. This could lay the groundwork for a retest of 1.2273 once the volume returns to normal levels.
A sustained move below 1.2202 will signal the presence of weakness with 1.2166 the next target. If this level fails, look for selling pressure to possibly increase.