• EUR/USD is trapped in a narrow range of 1.0727 to 1.0860.
  • A breakdown would expose the 2020 low of 1.0636. 
  • European governments have left the ECB alone in the fight against coronavirus. 

The EUR/USD bulls and the bears are fighting it out in the newfound trading range of 1.0727 to 1.0860. 

The pair formed a long-tailed candle on Friday, marking dip demand or bear failure at 1.0727. Meanwhile, the long upper wick attached to Monday's candle shows rejection or buyer fatigue at 1.0860. 

At press time, the pair is sidelined near 1.0825. The bias will remain neutral while the spot is held within the trading range of 1.0727-1.0860. A breakout will likely pave the way for at least a 100-pip rally, while a range breakdown would expose the 2020 low of 1.0636. 

The direction in which the range will be breached largely depends on what the Federal Reserve and the European Central Banks announce this week. "Increased bond purchases is an option for both central banks but having eased aggressively between meetings, they may not be eager to up stimulus for a few more weeks," said BK Asset Management's Kathy Lien. 

With the US government doing its bit in the fight against the coronavirus outbreak, the Fed can afford to remain on the sidelines and asses the situation on the virus front and the impact of the various easing measures announced over the past two months. 

Meanwhile, European leaders failed to reach an agreement on spending last week, leaving the European Central Bank alone in a fight against the coronavirus-induced slowdown. Some observers think the ECB may hint that it is ready to provide additional easing in June. As a result, EUR/USD is more likely to suffer a range breakdown. 

The focus is also on the first GDP readings.  "We know that the US and Eurozone economy contracted in the first 3 months of the year but the question is by how much," said Lien. As for Tuesday, the Eurozone data calendar is light and the pair will likely take cues from the broader market sentiment. 

Technical levels


Today last price 1.0824
Today Daily Change -0.0006
Today Daily Change % -0.06
Today daily open 1.083
Daily SMA20 1.0878
Daily SMA50 1.0956
Daily SMA100 1.1016
Daily SMA200 1.1041
Previous Daily High 1.086
Previous Daily Low 1.0811
Previous Weekly High 1.0897
Previous Weekly Low 1.0727
Previous Monthly High 1.1497
Previous Monthly Low 1.0636
Daily Fibonacci 38.2% 1.0842
Daily Fibonacci 61.8% 1.083
Daily Pivot Point S1 1.0807
Daily Pivot Point S2 1.0785
Daily Pivot Point S3 1.0759
Daily Pivot Point R1 1.0856
Daily Pivot Point R2 1.0883
Daily Pivot Point R3 1.0905



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD holds high ground around 1.19 amid buoyant mood

EUR/USD is holding onto gains around 1.19 as markets cheer the US transition and upcoming vaccines. A busy data day awaits traders ahead of the Thanksgiving holiday. 


Gold: Nears the 200-day SMA support

Gold is trading quite close to the widely-followed 200-day Simple Moving Average (SMA) of $1,797. The safe-haven metal is about to test the long-term SMA for the first time since March. A break below that support cannot be ruled out.

Gold news

GBP/USD trades around 1.3350 ahead of Sunak's speech

GBP/USD is trading around 1.3350, consolidating its gains. UK Chancellor Sunak is set to lay out budget plans. Brexit and vaccine news also move the pound ahead of a busy data day.


WTI rally continues despite large US inventory build

Oil has climbed to fresh multi-month highs, extending Tuesday's price gains as optimism emanating from potential coronavirus vaccines overshadows inventory build-up in the US. The API reports a large buildup of inventories in the weeke ended Nov. 20.

Oil News

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info