EUR/USD Forecast: Next relevant target emerges at 1.1815

EUR/USD pushes higher and advances beyond 1.17 on Monday.
The sell-off in the greenback dragged DXY to nearly 2-year lows.

Pablo Piovano FXStreet

Another day, another fresh top in EUR/USD. This time the pair surpassed the key 1.1700 mark and clinched tops in levels not seen since September 2018, always against the usual context of heightened dollar selling.

Indeed, the greenback continues to give ground at the beginning of the week in an atmosphere where investors’ preference for riskier assets seems to grow by the day. The backdrop, however, remains unaltered and dominated by firm hopes of a solid recovery in economies across the globe which in turn are supported by prospects of a COVID-19 vaccine to be delivered in the medium-term horizon.

Adding to the uncertain times surrounding the (former?) king dollar, the political factor is expected to start gaining momentum with less than 100 days for the US elections and vote intention tilted to Democrat candidate Joe Biden.

Near-term Outlook

EUR/USD is navigating well into the overbought territory, as per the daily RSI, hinting at the idea that a corrective downside could well be in the offing. That said, interim support emerges at the previous June’s peak at 1.1495 seconded by the Fibo level (of the 2017-2018) rally near 1.1450. The latter is also reinforced by June’s top at 1.1422. Back to the upside, which is the favoured short-term scenario, a move further north of so far tops around 1.1730 should pave the way for a visit to September 2018 top at 1.1815 ahead of 1.1852 (June’s 2018 high).

EUR/USD weekly chart

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Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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