EUR/USD Set Completes Retracement – Who’s Up for a Bullish Signal?
Arslan Butt • 1 min read
A day before, the single currency Euro rallied dramatically after initially dropping, as the EUR/USD pair continues to gain support around 1.06 level. The market then found itself stretching towards the 1.08 level fairly quickly, as the Federal Reserve is purchasing assets.
Most of the buying in the EUR/USD pair was triggered as the greenback plunged on Tuesday on signs that narrow funding requirements are easing slightly. The US Federal Reserve drew out all hurdles to supply much-needed dollar related liquidity in the market, which has weakened the dollar and underpinned the currency pair.
The Fed declared extensive quantitative easing and programs to boost credit markets in an extreme bid to backstop an economy rolling down from emergency limitations on commerce to combat the coronavirus.
On the fundamental side, the market today is loaded with high impact economic events such as Eurozone services and manufacturing PMI figures, which are expected to drop and pressure the single currency Euro.
EUR/USD – Daily Technical Levels
Pivot Point 1.0723
EUR/USD is currently trading around 1.0770, and technically, the pair has formed a bullish setup. On the daily chart above, the pair has closed a Doji candle followed by a solid bearish trend, which signifies odds of strong bullish reversal. On the higher side, EUR/USD is likely to head north to complete 38.2% Fibonacci retracement at 1.0960 while support continues to stay around 1.0720. The idea today is to stay bullish above 1.0723 to target 1.0809 and 1.0912.