Market Overview

EUR/USD Forecast: Technically Neutral-To-Positive, Needs To Clear The 1.1885 Resistance Level

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EUR/USD Forecast: Technically Neutral-To-Positive, Needs To Clear The 1.1885 Resistance Level

EUR/USD Current Price: 1.1843

  • Moderna announced its covid vaccine is 94.5% effective in preventing contagions.
  •  The greenback enjoyed short-lived demand from encouraging news.
  • EUR/USD is technically neutral-to-positive, needs to clear the 1.1885 resistance level.

The market started the week in a positive mood, with the EUR/USD pair reaching a daily high of 1.1869 during the Asian session. Positive news related to the Moderna coronavirus vaccine kept equities running throughout the different sessions, while the dollar found some short-lived demand ahead of the American opening after the company reported its experimental vaccine is 94.5% effective in preventing COVID-19, while its conservation requirements are quite standard. Optimism persists as the day comes to an end, although demand for the greenback eased.

The Union did not publish relevant data, while the US released the November NY Empire State Manufacturing Index, which resulted at 6.3, below the previous 10.5 and the expected 13.5. This Tuesday, the EU will release September Construction Output data, while the US will unveil October Retail Sales, this last, seen up 0.5% MoM.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair trades around 1.1840, unchanged from Friday’s closing level. The short-term picture keeps favoring the upside. The 4-hour chart shows that the pair has met buyers when nearing its 20 SMA, which remains above the larger ones. Technical indicators remain within positive levels, although lacking clear directional strength. The bearish case will be clearer on a break below 1.1790, while bulls will have better chances on a break above 1.1885.

Support levels: 1.1790 1.1740 1.1695  

Resistance levels: 1.1885 1.1920 1.1965

View Live Chart for the EUR/USD

Image sourced from Pixabay

 

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