KEY POINTS OF THE ARTICLE:

• The technical analysis of the eurodollar rate describes an uptrend that is leading the market towards the long-term technical pivot of $1.20
• It is the US dollar against a basket of major currencies that is being kept under pressure by the FED's monetary creation

Euro dollar (EURUSD) price chart with the TradingView platform

THE TECHNICAL ANALYSIS OF THE EURO DOLLAR RATE DESCRIBES AN UPWARD TREND THAT IS LEADING THE MARKET TOWARDS THE LONG-TERM TECHNICAL PIVOT OF $1.20

The price of the euro dollar is in an upward trend in the short term, with the strong return of the outperformance of European equities and the strong rebound of shares in the “value” category. For 4 months now, the EUR/USD rate has been evolving within a chartist range trading between support at $1.1615 and resistance at $1.1950/$1.20. Recall that $1.20 represents the pivotal technical resistance, that of the long-term bearish trend in the chart.

As long as the market stays below $1.20, the underlying trend remains bearish. If this technical pivot is exceeded, the next target would then be $1.25

What factors could cause the EUR/USD rate to rise to $1.25? This could be the relative catch-up of European equities and, above all, a United States Federal Reserve (FED) that would maintain its monetary creation policy and the US dollar weak against a basket of currencies, in particular the Yuan Renminbi

Long-term chart of the US dollar against a basket of major currencies — source: TradingView

IT IS THE US DOLLAR AGAINST A BASKET OF MAJOR CURRENCIES THAT IS BEING KEPT UNDER PRESSURE BY THE FED'S MONEY CREATION

On the other hand, the technical analysis of the US dollar recalls the presence of major support, so the technical mass has not yet been said. It is if this long-term support is broken that the US dollar would fall further