- EUR / USD gained traction for the third consecutive session on Wednesday amid a weaker USD.
- The optimistic mood prevailing in the market continued to weigh heavily on the safe-haven dollar.
The pair EUR/USD It spiked to fresh 32-month highs during the early North American session, and the bulls are looking to take advantage of the momentum beyond 1.2300.
The pair built on the previous day’s bullish breakout momentum via short-term downtrend line resistance and gained some traction on Wednesday. The rally marked the third day in a row of a positive move and was solely sponsored by a sustained selling bias in the US dollar.
Investors overlooked the effective rejection of a measure to increase direct payments to most US households to $ 2,000 and remain convinced of the likelihood of additional US financial assistance. This, coupled with hopes for a strong global recovery in 2021, continued to support market optimism.
Already strong risk sentiment received an additional boost after UK regulators approved the use of the AstraZeneca / Oxford coronavirus vaccine. This, in turn, was seen as a key factor that continued to weigh heavily on the dollar’s safe-haven status and propelled the EUR / USD higher.
USD bulls could not get any respite since Wednesday’s release of the goods trade balance, which showed the deficit rose to $ 84.8 billion in November. Today’s US economic agenda also includes the Chicago PMI and pending home sales, although it is unlikely to provide a significant boost to the EUR / USD pair.
Now it will be interesting to see if the pair is able to capitalize on the positive move or if the bulls choose to take some gains off the table amid relatively tight liquidity conditions in the wake of the year-end holiday season. That said, the setup still supports the prospects for an upward trajectory extension.
Technical levels
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