KEY POINTS OF THE ARTICLE:

• 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
• It is the US dollar against a basket of major currencies that is kept under pressure by the Fed's money creation

Euro dollar (EURUSD) chart with the TradingView platform

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

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

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

What factors could push the EUR/USD rate up to $1.25? This could be the relative catching up of European equities and above all, a US Federal Reserve (FED) that would maintain its policy of money creation and a weak US Dollar against a basket of currencies, including the Yuan Renminbi and European currencies.

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 KEPT UNDER PRESSURE BY THE FED'S MONEY CREATION

On the other hand, the technical analysis of the US dollar recalls the presence of a major support, so the technical mass is not yet said. It is in the event of a break in this long-term support that the US dollar would fall further.