Thursday, October 22, 2020

EUR / USD Remains Weekly Rising Pattern

 The US dollar remained weak towards weekend trading with a 7-week low against other major currencies as investors remained optimistic about the US economic stimulus package.

President Donald Trump and House of Representatives Speaker Nancy Peloci are seen approaching an agreement with a willingness to accept greater aid despite opposition from his own Republican party.

Pelosi is also optimistic about the opportunity to implement the latest aid package despite realizing that it is quite difficult to achieve before the election.

The depreciation of the US dollar has given room for other major currencies to record gains this week.

The Euro also traded higher against the US dollar although it was still seen as risky based on the current passive development of the economy.

The new wave of the Covid-19 pandemic has had a devastating effect on the economic recovery of Europe with the addition of movement restriction measures being studied for implementation.

On the price chart the EUR / USD pair still maintains a bullish pattern after the spike was exhibited earlier in the week.

Wednesday's price rise has seen the price reach its latest high of 5 weeks after overcoming last week's resistance level.

Reaching the latest high of around 1.18800, the price closed again the New York session trading at a slightly lower and slower level on the continuing trading in the Asian session this morning.

The price that remains above the Moving Average 50 (MA50) support level on the 1-hour time frame still indicates an bullish price trend on the EUR / USD chart.

A higher price hike is expected by investors to focus on the 1.19000 resistance tested in last September's trading.

However, if the price falls below the support level of MA50, the RBS zone (resistance become support) 1.18000 will be the focus of the price again.