EUR/USD Forecast: Market players eyeing 1.2413

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2286

Delayed discussions about expanding US coronavirus relief hurt the greenback.
Rising coronavirus-related numbers in Europe dent the market’s mood.
EUR/USD is technically bullish and could keep reaching year’s highs.

The EUR/USD pair hit 1.2294 this Wednesday, its highest level since April 2018. The market keeps selling the greenback, mainly after US Senate delayed the discussion on expanding coronavirus relief’s checks from $600 to $2000. On Tuesday, Republican leader Mitch McConnell blocked a move by colleague Bernie Sanders to allow a vote on increasing direct aid to the American people.

The greenback found some temporal demand amid the poor performance of European equities, weighed by coronavirus-related concerns. The number of new contagions and deaths is on the rise in Europe, despite immunization has begun a couple of weeks ago.

The EU didn’t publish macroeconomic data, but the US released November Wholesale inventories, which were down 0.1% in the month. The Goods Trade Balance posted a deficit of $ 84.82 billion in the same month. Later today, the country will publish November Pending Home Sales.

EUR/USD short-term technical outlook

The EUR/USD pair is trading near the mentioned high after finding buyers around 1.2250. The bullish case is strong, supported by intraday technical readings. The 4-hour chart shows that technical indicators have corrected overbought conditions before resuming their advances, as the pair develops above bullish moving averages. A critical resistance and possible bullish target is 1.2413, April 2018´s monthly high.

Support levels: 1.2250 1.2210 1.2175

Resistance levels: 1.2320 1.2350 1.2385

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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