EUR/USD is trading above 1.2250, up on the day as markets eagerly await Georgia's special elections that determine control of the Senate. Concerns about the new covid variant and vaccine deployment are also moving markets.
EUR/USD keeps the bullish stance unchanged despite the recent move up run out of steam in the 1.2300 neighbourhood.The euro currency has been consolidating near the rising trend line over the past few days.While price action was making modestly higher highs, the pace of gains was gradual. The slowing momentum has led to a decline off the trendline consolidation
The bias in EUR/USD, therefore, remains unaltered and allows for the continuation of the current leg higher in the short-term horizon. However, the proximity of the overbought territory carries the potential to spark occasional corrections. These are expected to meet initial support at the weekly low at 1.2129.
In the meantime, a breakout of recent tops just above 1.2300 should pave the way for extra gains as well as a potential move to 1.2413 (April 2018 high) ahead of 1.2476 (March 2018 high).