EUR/USD Forecast: Mildly bullish in the near-term

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1832

Coronavirus concerns and the US presidential election to remain in the spotlight.
Financial markets to continue to seesaw between covid concerns and vaccine hopes.
EUR/USD is technically neutral-to-bullish could advance towards 1.1920.

The EUR/USD pair finished the week with losses around 1.1830, although up on Friday for a second consecutive day. Equities rallied, underpinning the demand for the shared currency, while the dollar was hit by dismal US data and the announcement of restrictive measures in some states. The preliminary estimate of the US November Michigan Consumer Sentiment Index printed at 77, below the 82 expected and the previous 81.8. Meanwhile, coronavirus outbreaks across the US have led several cities and states to announce curfews and temporal lockdowns.

The macroeconomic calendar will remain light on Monday, as no relevant data will come from Europe and the US. Instead, the market’s sentiment will likely continue seesawing between rising coronavirus cases and hopes for a vaccine/more stimulus. Also, speculative interest will be looking for fresh clues on definitions of the tumultuous US presidential election.

EUR/USD short-term technical outlook

According to the daily chart, the EUR/USD pair is neutral-to-bullish, as it managed to hold above its 20 DMA throughout the week, while the larger moving averages advance below the shorter one. Technical indicators are around their midlines, with modest upward slopes. For the near-term, the 4-hour chart indicates that the risk is skewed to the upside, as the pair is developing above all of its moving averages, as technical indicators advance within positive levels.

Support levels: 1.1770 1.1725 1.1680

Resistance levels: 1.1840 1.1885 1.1920

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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