EUR/USD Forecast: Keeps Posting Higher Highs And En Route To Test The Year High At 1.1915

EUR/USD Current Price: 1.1867

• Market players started the week with a cautious mood, concerned about the economic future.
• The macroeconomic calendar will be scarce for Europe and the US until the end of the week.
• EUR/USD keeps posting higher highs and en route to test the year high at 1.1915.

The EUR/USD pair slowly but steadily advanced this Monday, reaching a fresh one-week high of 1.1880 at the beginning of the US session. Investors kept dumping the greenback, amid persistent tensions between the US and China, and concerns about the coronavirus spread, not only in the US. The number of global cases keeps rising, with focus through all Europe and the US. Meanwhile, the market mood was sour, as Japan kick-started the week reporting its worst GDP on record, another consequence of the ongoing pandemic.

The macroeconomic calendar had little relevant to offer, as the US published the NAHB Housing Market Index, which improved to 78 in August from 72 in July, beating expectations. This Thursday, the macroeconomic calendar will remain scarce, with no reports coming from the EU. The US will publish July Housing Starts and Building Permits for the same month.

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EUR/USD Short-Term Technical Outlook

The  EUR/USD pair retreated from the mentioned high, ending the day with modest gains in the 1.1860 price zone. The 4-hour chart indicates that bulls are still in control of the pair despite the lack of bullish strength. In the mentioned chart, the pair is developing above bullish 20 and 100 SMAs, while technical indicators remain within positive levels, although with uneven directional strength. The Momentum indicator continues easing, now nearing the 100 line but still above it. A pullback towards the 1.1790 won’t affect much bull’s determination, but a break below it should signal a steeper decline ahead.

Support levels: 1.1830 1.1790 1.1740

Resistance levels: 1.1915 1.1950 1.1990

Image sourced from Pixabay