EUR/USD Forecast: Technically Bullish But Needs To Clear The 1.1920 Resistance Area

EUR/USD Current Price: 1.1862

• Pfizer announced its vaccine against COVID-19 is 95% effective in preventing contagions.
• Soft macroeconomic data has kept EUR/USD confined to familiar levels.
• EUR/USD is technically bullish but needs to clear the 1.1920 resistance area.

The EUR/USD pair kept trading at a dull fashion this Wednesday, trapped within familiar levels yet at the upper end of its weekly high.  The pair followed equities’ limbo, as global indexes seesawed between gains and losses, unable to find directional strength. Pfizer completed phase three of its experimental coronavirus vaccine, announcing it is 95% effective in preventing contagions without serious side effects. The market, however, seems more focused on the fragile economic reality.

Soft economic data exacerbated the quietness across financial markets. The EU published the final version of October inflation data, confirming the annual CPI at 0.2%. As for the US, the country released October Housing Starts, which increased by 4.9%, and Building Permits that remained flat in the month.

This Thursday, ECB’s President Christine Lagarde is due to participate in a virtual event and could make comments on the current EU situation. The US macroeconomic calendar will include Initial Jobless Claims for the week ended November 13, foreseen at 707K.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair holds on to a positive stance, as the 4-hour chart shows that it has bounced from a bullish 20 SMA, which continues to provide dynamic support around 1.1850. The 100 and 200 SMA in the mentioned time-frame, technical indicators hold on to positive levels, although lacking directional momentum. Bulls would have better chances on a break above the 1.1920 resistance area, although a catalyst is nowhere to be found.

Support levels: 1.1845 1.1800 1.1760

Resistance levels: 1.1885 1.1920 1.1965

View Live Chart for the EUR/USD

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