- The EUR / USD was unable to capitalize on modest intraday gains amid Thursday’s downsized trading for the holiday.
- The underlying bullish sentiment weighed on the safe-haven dollar and extended some support.
- The setup supports the outlook for some downside buying to emerge on any corrective pullback.
The pair EUR/USD It fell around 25 pips from the daily highs and was last seen hovering near the lower end of a narrow intraday trading range, just below 1.2200.
Growing market optimism about an impending Brexit deal continued to support positive business sentiment in equity markets. The risky mood continued to undermine the safe-haven US dollar, which, in turn, was seen as one of the key factors in extending some support to the EUR / USD pair.
The rally, however, lacked bullish conviction and the pair remained capped below swing highs overnight around the 1.2220 region. Reduced trading conditions over the holidays prevented investors from making aggressive bullish bets and kept any significant rises for the EUR / USD in check.
In the absence of a new fundamental catalyst, the pair is more likely to continue its moderate / in-range price action. That said, the incoming Brexit headlines and the events surrounding the coronavirus saga could still infuse some volatility in the EUR / USD pair.
However, the pair remains on track to end the holiday shortened week with modest losses, although the short-term bias remains skewed in favor of bullish traders. Therefore, any significant slippage could continue to draw some buying on the dips and remain limited near the 1.2125-30 congestion zone.
Technical levels
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