- Markets rise Monday on vaccine optimism and data from China.
- EUR / USD with bullish outlook and limited time.
The EUR / USD climbed hours ago to 1.1868, reaching the highest level in a week, underpinned by the weakness of the dollar. It then undertook a pullback that extended to 1.1835. It is trading around 1.1845, with a short-term bullish tone.
The rise was motivated by a rise in stocks throughout the world. Optimism continues for a vaccine for the coronavirus and also for data from China. Looking ahead to the next few hours, the speech by Christine Lagarde, president of the European Central Bank, the data from the Empire manufacturing index and the speech by the vice president of the Federal Reserve, Richard Clarida, stands out.
Technical overview
The EUR / USD found support last week above the 20 and 55 day moving averages, which are passing through the 1.1780 zone. A close below that zone will point to a weakness for the euro, going forward, possibly leading to a trade in lower ranges. The key support that follows is the 1.1600 area where the September and November floor is.
The Short-term outlook looks bullish for EUR / USD. The price continues to find resistance at the 1.1870 / 80 area. A confirmation above will leave the pair ready to return above 1.1900; the next resistance is at 1.1920.
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