EUR/USD Forecast: Bullish sentiment depending on coronavirus headlines

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0906

Global indexes post substantial gains amid a slight improvement in the pandemic numbers.
German’s February Industrial Production better than anticipated.
EUR/USD en route to 1.0950, a critical Fibonacci resistance level.

The EUR/USD pair has neared the 1.0900 level during this European session, as the market maintained the upbeat mood seen on Monday. Over the weekend, hopes surged on the back of decreasing number of both, new contagions and deaths related to the coronavirus pandemic. Wall Street started the week with the three major indexes adding over 7.0% each, which lead to substantial gains in Asian and European equities this Tuesday. US futures are also up, despite not so positive news coming from the Old Continent, as the number of deaths in Spain has risen again.

Germany released this Tuesday, February Industrial Production, which rose by 0.3% MoM against an expected backdrop of 0.9%. When compared to a year earlier, production was down by 1.2%, also better than forecast. The US macroeconomic calendar has little to offer today.

EUR/USD short-term technical outlook

From a technical point of view, the EUR/USD pair is bullish, now above the 1.0900 threshold and pressuring the daily high ahead of the US opening. The pair is also surpassing the 50% retracement of its latest bullish run, with the next Fibonacci resistance at 1.0950. In the 4-hour chart, the pair has advanced beyond a now flat 20 SMA, which converges with the 61.8% retracement of the same advance at 1.0830. Technical indicators advance within positive levels, supporting additional gains towards the mentioned static resistance level.

Support levels: 1.0875 1.0830 1.0795

Resistance levels: 1.0910 1.0950 1.0990

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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