Technical Chart pick of the day: Hourly EURUSD – Bullish
The euro’s rally overnight came after France and Germany proposed that the European Commission borrow money on behalf of the whole EU for the recovery fund. The news also sent Italian government bond yields skidding to their lowest in more than a month. The proposed fund is mostly expected to benefit Italy and Spain, whose economies have been hit hard by the coronavirus pandemic but have weak public finances. The single currency continued to gain after the ZEW survey of German Economic Sentiment showed signs of improvement.
Tensions between the US and China coupled with encouraging data from a COVID-19 vaccine trial in the US, as pulled some investors away from the dollar to focus on riskier assets.
· On a technical perspective, the trend is bullish, with prices above the 20, 40, 100 and 200 EMAs
· A bullish crossover formed, as the 100 EMA crossed over the 200 EMA. This indicates that buying strength is present.
· Based on the pivot point analysis, prices are above the pivot levels. This signifies bullishness.
Resistance: R1: 1.09591, R2: 1.10065, R3: 1.11335
Support: S1: 1.08321, S2: 1.07525, S3: 1.06255
