BUZZ-COMMENT-Peak of new EUR/USD range may develop soon
Jan 24 (Reuters) - The peak of a new EUR/USD range is very likely to develop soon, and this is a good time to hedge the risk that EUR/USD settles lower in 2025.
This year began with a plunge below the rough 1.05-1.10 bounds in which EUR/USD traded throughout most of 2023 and 2024, ending a long quiet period with volatility surging.
Thanks to the extent of the sell-off which swiftly reached 1.0177, the pair became oversold, resulting in a correction to 1.0471.
From here there is a high risk of renewed losses and only a slim chance of a return to the old range, which would require a big change in current interest outlooks and a marked lessening in concerns surrounding U.S. policies.
There are a host of levels nearby to influence a peak now that the objective for a minor correction (38.2%) of the drop from November's 1.0937 peak has been met at 1.0467.
The rally is stretched at the 1.0467 peak of the 20-day Bollinger Bands - which influenced the bounce while the 55-DMA is 1.0446. The daily Ichimoku cloud, which is thick from 1.0468 to 1.0643, is a significant resistance area, and it's dropping.
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