Friday, November 13, 2020

Can EUR / USD Soar Back to 1.1900 Height?

 The financial markets over the weekend were seen to be quite risky for traders following mixed market sentiment.

After initially reacting to the report on the effectiveness of the Coronavirus vaccine earlier in the week, investors are cautiously awaiting further development of the vaccine while assessing new cases of infection, particularly in the United States (US) and Europe.

The US dollar has been seen steady since the beginning of the week despite other safe-haven trades declining after investors began to move towards risky assets that provided more returns.

However, the US dollar was again seen moving weaker against the Euro in trading on Thursday yesterday with the price rising on the EUR / USD chart.

Expectations for prices continue to decline based on the previous bearish trend pattern faltered when prices soared in the European session yesterday past the SBR zone (support become resistance) 1.18000.

The price also passed the Moving Average 50 (MA50) barrier level on the 1-hour price movement before the price returned above that level making it a price support level.

Trading that continued into the Asian session on Friday saw the price move slowly above the 1.18000 level is likely to continue its rise before closing the trading curtain this week.

The next rise is seen to return to the resistance zone at 1.19000 which was tested earlier in the week but failed to breakthrough.

On the other hand, if there is a decline in the price below the 1.18000 focus zone, the support level at 1.17200 will be the focus.

A lower drop will re-test the RBS zone (resistance become support) 1.16800 before reaching the support zone 1.16100.