EURUSD has retraced 50% of its original move from November lows to December highs. This is also the fourth touch of the 200dma which is providing a level of support. The order of moving averages suggest further upside but we need to wait for them to start separating away from each other to confirm the move higher. Continuation divergence on the RSI and the Inside Bar/Harami candle price action suggest bullish momentum, as the chart below shows. Whilst this pair is arguably trading sideways, the seasonal probability suggests for a bullish month as the table shows below.
Below is also an analysis I have done on the EURUSD since inception. It shows the best and worst performing months on AVERAGE. Remember the data can be skewed with the likes of the 2008 crash but Seasonality is an extra edge in the market we shouldn't ignore.
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