EUR/USD Forecast: Next bullish target at 1.1569
|EUR/USD Current Price: 1.1528
- EU leaders agreed on a €750 billion coronavirus recovery fund with €390 billion in grants.
- Chinese CanSino potential coronavirus vaccine showed promising results, ready for phase three.
- EUR/USD is trading at its highest since early 2019 and has scope to extend its latest advance.
The greenback was the worst performer this Tuesday, plummeting against all of its major rivals. The EUR/USD pair retook the 1.1500 level, surging to levels last seen in January 2019, when the pair topped at 1.1569. The main market motor was again sentiment, which turned upbeat. EU leaders finally agreed on a coronavirus recovery fund, of €750 billion, which will include €390 billion in grants. The news lifted European equities, which retreated ahead of London’s close to post modest intraday gains. US indexes, on the other hand, traded mixed, with the NASDAQ struggling to post gains.
Meanwhile, investors kept monitoring coronavirus developments. The number of cases continues to rise in the US, with over 10,000 new daily cases in Florida. The death toll across the country somehow decreased. Additionally, China reported that its CanSino potential vaccine had shown promising results in early stages of testing, now moving into phase three. That would be then the third vaccine entering such a stage.
The macroeconomic calendar had nothing relevant to offer, as the US only published the June Chicago Fed National Activity Index, which resulted at 4.11 versus 3.24 expected. This Wednesday will also be a data-light day, as the EU won’t publish figures, while the US will only release June housing data.
EUR/USD short-term technical outlook
The EUR/USD pair traded as high as 1.1539, establishing nearby ahead of the Asian session. The pair is overbought, but given that it preserves its positive momentum by the US close, chances are of another leg higher coming up. The 4-hour chart shows that the 20 SMA has turned north far below the current level, while still above the larger ones. Technical indicators, in the meantime, have turned flat after reaching overbought readings. Overall, the risk remains skewed to the upside, with room to test the mentioned January high.
Support levels: 1.1470 1.1420 1.1365
Resistance levels: 1.1530 1.1570 1.1610
View Live Chart for the EUR/USD
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