Technical Analysis: EURUSD confronts previous support line as Biden heads to White House

Technical Analysis: EURUSD confronts previous support line as Biden heads to White House

With the US dollar on a pullback move since the week’s start, EURUSD buyers revisit the previous support line stretched from December 02 ahead of US President-elect Joe Biden’s inauguration ceremony. Although Treasury Secretary Janet Yellen has already favored further stimulus, Biden’s first words as the 46th US President will be the key. As a result, any upside break beyond 1.2155 immediate resistance will eye the 200-SMA level near 1.2185 and then the 1.2200 round-figure. It should, however, be noted that extra optimism can propel the quote to cross the 1.2200 threshold, which in turn will direct EURUSD towards the monthly high near 1.2350.

On the contrary, a pullback from the present level, which is more likely, will attack the monthly low surrounding 1.2050 and the 1.2000 psychological magnet. However, any further downside will not hesitate to recall the late-November bottom close to 1.1800. To sum up, EURUSD is consolidating the early-month losses and is near to key hurdles ahead of an important event, which in turn suggests further weakness.

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