EUR/USD struggles to beat the 1.1900 level but bearish potential is limited

A dull week comes to an end, with the EUR/USD pair closing it little changed in the 1.1870 price zone as speculative interest is trapped between coronavirus outbreaks and vaccine hopes. Economic growth figures will gather attention in the next few days. Meanwhile, bulls remain in control of the world’s most popular currency, but can’t break above 1.1900, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“Several front-runners´ vaccine producers reported encouraging progress in their coronavirus shots, according to early results from stage three trials. Yet, at the same time, the world is reporting over 600K new cases per day. As the week went by, more US states and cities announced restrictive measures to curb the spread, although to no avail. Strict lockdown measures in Europe seem to help a bit, but the situation in the Old Continent is far from optimal. Market participants are worried, as a steep economic downturn became clear in this the last quarter of the year.”

“Next Monday, Markit will release the preliminary November estimates of its PMIs. Manufacturing activity and services output are seen contracting from October levels in Europe, while US ones are seen stable.”

“Germany will publish next Tuesday is Q3 Gross Domestic Product, expected to be down by 10.1% in the three months to September, and the November IFO survey. The US will unveil later in the week October Durable Goods Orders. It will be a shortened week, as the US celebrates Thanksgiving on Thursday.”

“As it happened last week, the first resistance level is the 1.1910/20 price zone, followed by the year high at 1.2011, with a less relevant level around 1.1960. The low set in the previous week at 1.1745 provides support en route to the 1.1640/60 price zone.”