EUR/USD Forecast: Further near term gains in the docket

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1300

Stocks markets are giving mixed hints on sentiment heading into Wall Street’s opening.
US Treasury yields recovered from an early dip, challenging weekly highs.
EUR/USD is mildly bullish in the near term, needs to clear the 1.1310 resistance.

The EUR/USD pair recaptured the 1.1300 level heading into the US opening, although so far, there has been no follow-through. The market´s mood is unstable, as investors are still struggling to price in the latest coronavirus developments and the latest from central banks after the Fed announced it might speed up tapering in their next meeting.

The American currency managed to advance during European trading hours, following softer US government bond yields and as stocks traded with a sour tone. Equities bounced, putting mild pressure on the greenback, but as government bond yields remain strong, the dollar’s decline is modest.

The EU did not release relevant macroeconomic figures, while the US published MBA Mortgage Applications for the week ended December 3, up 2% from -7% in the previous month. The US will publish October JOLTS Job Openings.

EUR/USD short-term technical outlook

The EUR/USD pair trades near a daily high of 1.1307, mildly bullish in the near term. The 4-hour chart shows that the price is currently extending above its 20 and 100 SMAs, both converging flat a few pips below the current level. At the same time, technical indicators crossed their midlines into positive territory, maintaining their bullish slope. The pair needs to break through the 1.1310 resistance to have further chances of advancing.

Support levels: 1.1265 1.1220 1.1185

Resistance levels: 1.1310 1.1345 1.1380

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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