FXStreet (Bali) – The US dollar is positioned to continue leading the forex board in December, with further gains against the Euro in store, notes Valeria Bednarik, Chief Analyst at FXStreet.
“The dollar is positioned to continue leading the forex board this month, as employment readings on Friday highlighted the divergence in economic growth with other major economies.”
“Technically the 1 hour chart shows price hovering near the fresh year low posted on Friday at 1.2270 and well below its moving averages that gain bearish slope below the 1.2400 mark. Indicators in the mentioned time frame turn lower near oversold levels with no aims to turn higher anytime soon.”
“In the 4 hours chart 20 SMA maintains a strong bearish slope around 1.2330 and indicators hold in negative territory, albeit lacking directional strength at the time being. Weekly charts show a strong static resistance area between 1.2240/70 with multiple lows back to 2008/2010, and a break below it should signal further declines towards the 1.2000 critical figure.”