FX.co ★ EUR/USD Price Analysis, 4 December

• EUR/USD extends the rally to the 1.2170/75 band.
• US Nonfarm Payrolls will be later in the NA session.

The single currency extends the bullish sentiment and pushed EUR/USD back to the 1.2170 region at the end of the week.

What to look for around EUR

EUR/USD manages to record another 32-month peaks in the 1.2170/75 zone.

EUR/USD keeps the climb and it is gradually approaching the 1.2250 barrier ( 2018 March swing low). In the very near term, EUR/USD finds support from prospects of a strong recovery in the region along with the increasing likelihood of extra stimulus in the US .

Technical analysis highlights that the 1.2250 level is the next major upside target for the EURUSD pair as it offers the strongest form of upside resistance. As mention in my past article if EUR/USD has breached above the 1.209-1.2100 critical resistance area of 2017 swing high .Moreover, 1.2550 level coincides with 161.8% Fibonacci extensions of possible interest of reversal or continuation .

While this pair ticked higher for the third straight day on Thursday, it created a candle with a long upper wick – a sign of uptrend fatigue on the 4-hour chart. Validating the overbought signal on the Stochastic Oscillator (94.26). To the downside, a close below 1.20 would weaken the immediate bullish case.