EUR/USD Price Forecast: Scope for a move to 1.1370

EUR/USD extends the upside momentum at the beginning of the week.
Risk-on sentiment still prevails among market participants.

Pablo Piovano FXStreet

The better tone in the risk-associated complex is sustaining another positive start of the week for EUR/USD, all despite the coronavirus pandemic is giving no signs of subsiding for the time being.

In fact, the relentless re-opening of the economy on both sides of the Atlantic coupled with the proximity of the earnings season appear to be enough to sustain the buying interest in the riskier assets and to keep the buck under persistent pressure.

Near-term Outlook

Ideally, EUR/USD should try to test/surpass last week’s tops around 1.1370 in order to open the door to extra gains. If that’s the case, then the June peaks around 1.1420 should come to the fore ahead of a probable move to YTD highs in levels just shy f 1.1500 the figure (March 9). On the other hand, there is an interim support at the Fibo level at 1.1186 ahead of the more relevant 1.1168 recorded in mid-June. A breach of this support band should expose a deeper pullback to, initially, the 55-day SMA at 1.1106 ahead of the always-critical 200-day SMA, today at 1.1048.

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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