The Euro gains remain capped below 1.10 as the US-China tensions keep escalating, overshadowing the recent COVID-19 potential vaccine optimism. Today, ECB’s Lagarde will take the center stage, as her comments will be closely analyzed to see if the central bank stands ready to introduce additional stimulus measures. If they do, it will likely impact negatively on the Single currency. From a technical perspective, the bullish structure remains intact after price bounced from the 50 and 200-period SMAs yesterday, printing a higher-low. As long as price holds above 1.0950, the bullish momentum will likely push the pair higher to retest the 1.10 pivot resistance level and possibly beyond.
Support: 1.0950 / 1.0880
Resistance: 1.10 / 1.1050
