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EUR/USD Upward Channel Supports - Eyes on U.S. FOMC Meeting Minutes!


Today in the Asian trading hours, the EUR/USD currency pair has managed to extend its previous day gains but started to lose some of its gains amid broad-based U.S. dollar recovery mode, backed by the U.S. fiscal stimulus progress, while the quote took rounds just near 1.1940 level. In the meantime, the rising coronavirus cases in Germany also turned out to be a major factor that kept the currency pair gains limited. At the moment, the EUR/USD currency pair is currently trading at 1.1938 and consolidating in the range between the 1.1927 and 1.1953.

Despite the rally in Asian stocks, the broad-based U.S. dollar took bids amid U.S. fiscal stimulus progress and ahead of the FOMC minutes, which eventually kept the currency pair under pressure.

However, the ongoing concerns about the growing coronavirus cases in most places and worsened US-China relations might also help the U.S. dollar put the safe-haven bids. As we all know, the conflicting tone between US-China remained on the card as the Trump administration continued to increase the hardships of companies from China. It should be noted that the U.S. diplomats recently announced punitive measures for Huawei in their latest attack for China. However, these gloomy headlines tend to cap further gains in the equity market, which might help the U.S. dollar put the safe-haven bids ahead.

On the positive side, the market trading sentiment gained support from the positive reports of recovery in the U.S. housing market, and American House Speaker Nancy Pelosi's efforts to break the stimulus deadlock initially gave support to the equity market. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies was flat, rose by 0.06% to 92.317 by 12:03 AM ET (5:03 AM GMT).

However, growing virus cases from Germany and France favor the probabilities of fresh lockdowns in Europe's biggest economies, which might weigh on the shared currency. As per the latest report, the reported coronavirus cases increased to 226,914, with a total of 9,243 deaths so far. Whereas, the cases increased by 1,510 in Germany on the day against the previous day +1,390. At the same time, the death toll rose by 7, as per the German disease and epidemic control center report, Robert Koch Institute (RKI).

Later this session, the market traders will keep their eyes on the news flow from the Eurozone EcoFin meeting, Eurozone's Current Account data, and Consumer Price Index. The headlines concerning the US COVID-19 aid package, virus figures, and Sino-American trade will not lose its importance.

Daily Support and Resistance
S1 1.1756
S2 1.1809
S3 1.1841
Pivot Point 1.1861
R1 1.1893
R2 1.1913
R3 1.1966

Technically, the EUR/USD is trading with a bullish bias at 1.1943 level, holding right below a resistance level of 1.1966 level. Bullish crossover of this level can drive more buying until the next resistance level of the 1.2027 level. The RSI is staying in the bullish zone, supporting buying trades in the EUR/USD. While the 50 EMA also suggests a bullish trend in EUR/USD. Let's consider staying bullish upon a breakout of 1.1966 level. Good luck!

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