- EUR / USD bulls extend control for the third day in a row.
- The inverted shoulder-head-shoulder breakout on the 1-hour chart points to 1.1900.
- Bullish crossover detected, but RSI is well above the midline.
EUR / USD remains higher, above the 1.1850 level at the start of a new week, extending its winning streak for the third day in a row on Monday.
Optimism for a vaccine for covid seems to offset the growing concerns caused by new cases of coronavirus, contributing to the sentiment of appetite for risk in the markets. Meanwhile, the free trade agreement on the Regional Comprehensive Economic Association also adds to the market optimism.
From a technical perspective, the pair has confirmed an inverted shoulder-head-shoulder breakout on the 1 hour chart, pointing to a test of the 1.1900 level.
The bullish crossover, with the 50 hour moving average crossing above the 100 hour moving average, also adds credibility to the upward move.
Meanwhile, the RSI has pulled back from overbought territory, still holding well above the midline, suggesting that there is room for further rises.
Ahead of the 1.1900 level, the bulls are likely to face stiff resistance at 1.1860, November 5 high.
On the other hand, immediate support is seen at the bullish 21-hour SMA at 1.1826, below which the 1.1808 level will be tested.
The confluence of the 200 hourly SMA and the pattern neckline at 1.1800 is the level to beat for the bears.
EUR / USD 1 hour chart
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