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EUR/USD on a Bullish Track - Triple Top Pattern Set to Extend Resistance! 


Today in the Asian trading hours, the EUR/USD currency pair succeeded to extended its early-day bullish rally and hit the fresh intra-day highs above the mid-1.1800 level. Nevertheless, the basis for the increases in currency pair could also be attributed to the broad-based U.S. dollar bearish bias, triggered by the on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus and the second wave of coronavirus (COVID-19). On the other hand, the reports that the country’s Finance Minister Olaf Scholtz outlined a EUR10 bn job subsidy extension plan, eventually underpinned the shared currency and contributed to the currency pair gains.

In the meantime, the rising number of coronavirus in Europe became the key factor that kept the lid on any additional gains in the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1850 and consolidating in the range between 1.1832 and 1.1868.

During speaking on a German TV late on Weakened, the country’s Finance Minister Olaf Scholtz sketched a job subsidy extension plan worth 10 billion Euros. The plan will extend up to 2 years and allow firms to keep their employees and avoid layoffs. It will cover about 60% or more of salary. This supported the shared currency Euro and added in the upward trend of EUR/USD pair.

The on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus and the second wave of coronavirus (COVID-19), not to forget the latest tension between America and China over TikTok. Both the House of Representatives and the Senate's lawmakers have returned to their home states from their month-long vacation, and it eventually raised hopes of much-awaited coronavirus (COVID-19) relief package.

On the other hand, the online meeting between the world’s top two nations I,e the U.S. & China has been postponed without giving any future dates, that was initially scheduled for Saturday. However, this report played a negative role in the market trading sentiment and capped further gains in the equity market. The negative impact on the equity market decreased the risk sentiment and limited the early daily gains of currency pair EUR/USD.

The broad-based U.S. dollar reported losses on the day as the United States still faces uncertainty over the much-awaited coronavirus (COVID-19) relief package, which eventually destroyed hopes for a quick U.S. economic recovery.

Daily Support and Resistance

S1 1.1687

S2 1.1756

S3 1.1799

Pivot Point 1.1825

R1 1.1868

R2 1.1894

R3 1.1962

The EUR/USD is encountering immediate resistance at 1.1865 level, which is stretched by a double top technical level. Beneath this, the EUR/USD can stretch selling bias unto 1.1820 and 1.1782 mark. Nevertheless, the bullish breakout of the 1.1865 level can spread selling until 1.1908. The RSI and 50 EMA are supporting bullish bias in the EUR/USD pair. Let's brace for buying until 1.1898. On the lower side, a bearish breakout of 1.1806 can lead the Euro pair until 1.1720 level. Good luck!

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