EUR/USD Forecast: Bulls paused but retain control

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1732

US Consumer Confidence is foreseen retreating to 94 from 98.1.
US Senate Republicans presented its next coronavirus aid plan.
EUR/USD holds above 1.1700 and retains its bullish stance in the short-term.

The EUR/USD pair eased from a 22-month high of 1.1781, as speculative interest took some profits out of the table, helping the greenback to correct extreme oversold conditions. The pair bottomed for the day at 1.1698, from where it slowly recovered as the American currency remains the weakest across the FX board.

The macroeconomic calendar has been quite scarce so far this Tuesday, with no data coming from the Union. The US session will bring the CB Consumer Confidence, foreseen at 94 from 98.1 in the previous month.

Meanwhile, the US Senate Republicans presented their coronavirus relief proposal. It includes another round of $1,200 in direct payments to individuals, more money for the Paycheck Protection Program, a reduction in federal unemployment benefits from $600 to $200, and more than $100 billion for reopening schools. That said, it’s just a proposal that has yet to get the approval of Democrats.

EUR/USD short-term technical outlook

The EUR/USD pair is holding above the mentioned daily low ahead of Wall Street’s opening but lacks bullish momentum. The technical stance is bullish despite the ongoing bearish correction, as, in the 4-hour chart, the pair continues to develop above a sharply bullish 20 SMA, which currently stands at 1.1660 providing dynamic support. The larger moving averages gain strength upwards below it, while technical indicators are regaining the upside after correcting extreme overbought conditions.

Support levels: 1.1700 1.1660 1.1625

Resistance levels: 1.1740 1.1785 1.1820

View Live Chart for the EUR/USD

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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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