- EUR / USD continues to move up non-stop on Monday.
- The sale around the dollar continues to reinforce the rise of the pair.
- The German preliminary CPI fell short of expectations in November.
Buying interest around the common currency continues unabated and has pushed the EUR / USD pair to the psychological level of 1.20 Monday. At the time of writing, the pair retraces initial gains towards the 1.1960 region after having peaked at 1.2002.
EUR / USD Now Targets 2020 High
EUR / USD has risen around the psychological level of 1.20 at the beginning of the week.
Strong bullish momentum around the pair continues supported by relentless selling pressure around the US dollar despite ever-present concerns about the advance of the coronavirus pandemic.
In fact, investors continue to favor the “glass half full” vision and look beyond the current pandemic, while anticipating a “V” -shaped recovery in the global economy. This upbeat sentiment has accelerated after US President-elect Joe Biden nominated former Fed Chair Janet Yellen as Secretary of the Treasury.
Turning to economic data, preliminary inflation figures from Germany showed that consumer prices, measured by the CPI, are expected to contract 0.8% month-on-month in November and 0.3% year-on-year.
What can we expect around the EUR?
The EUR / USD upward movement is approaching the round 1.20 level and opens the door to a possible test of the yearly highs near 1.2020, always in the context of a favorable sentiment for risk appetite. In the very short term, EUR / USD appears supported by prospects for a strong recovery in the region coupled with the increasing likelihood of additional stimulus in the US Risks to the common currency stem from possible political turmoil around the EU Recovery Fund and the growing chances of further easing measures from the ECB being announced as early as the December meeting.
EUR / USD levels
At the time of writing, the EUR / USD pair is gaining 0.02% on the day, trading at 1.1964. A break above 1.2000 (psychological level), would target 1.2011 (September 1 high) en route to 1.2032 (23.6% Fibonacci retracement of the 2017-2018 move). On the other hand, immediate support is at 1.1800 (November 23 low), followed by 1.1745 (November 11 low) and finally 1.1709 (Fibonacci retracement of the 2017-2018 movement).
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