EUR/USD Breaks Double Top – Quick Update on Bullish Signal! 

Posted Monday, July 20, 2020 by
Arslan Butt • 2 min read

The EUR/USD extended its early-day bullish moves, trading over the four-month high, above the mid-1.1400 level, and continuing its previous 4-day winning streak, while representing gains of 0.41%. However, the gains in the currency pair could be attributed to the modest upbeat trading sentiment, which undermined the broad-based US dollar and contributed to the gains for the currency pair. 

The upbeat remarks of French Finance Minister Bruno Le Maire, regarding budget and recovery funds, helped the currency pair to hit the one-month high. Currently, the EUR/USD currency pair is trading at 1.1463 and consolidating in the range between 1.1413 – 1.1468. However, the traders seemed cautious to place any strong position, ahead of the rate decision of the European Central Bank, which will reconvene at 14:00 GMT today.

French Finance Minister, Bruno Le Maire, said that the agreement at the European Union (EU) Summit was possible and necessary. Furthermore, he said that a pension reform was also important. This happened ahead of the EU meeting, which is scheduled to reconvene later today, at 14:00 GMT. The latest report indicated that the EU hardliners were ready to endure the proposal of EUR 390 billion in grants and the balance of EUR 360 billion in loans. This statement recently exerted some positive impact on the shared currency and contributed to the gains in the currency pair.

He tweeted that the European Union (EU) Summit discussions seem difficult, but today’s result could be satisfactory. In the meantime, the Dutch Prime Minister, Mark Rutte, said: “on the whole, we are making progress at the EU Summit.” The news put a mild bid under the EUR/USD, lifting it higher from 1.1415 to 1.1464.

Apart from this, the modest upbeat market sentiment was supported by hopes regarding the coronavirus vaccine, which overshadowed the fears of the ever-increasing numbers of the virus late last week. Moreover, the modest risk-on market sentiment was further bolstered by the fresh COVID-19 stimulus measures from the US, which are expected to be delivered during the week.

The market traders have just started to cheer the optimism concerning the COVID-19 vaccine, which was triggered after the upbeat signals form Moderna, and US President Donald Trump’s comments concerning the COVID-19 vaccine.

Daily Support and Resistance

S1 1.1285

S2 1.1351

S3 1.1389

Pivot Point 1.1416

R1 1.1455

R2 1.1482

R3 1.1548

The EUR/USD has examined the double top resistance at the 1.1446 mark, and it is now gaining support at the 1.1410 mark. The bullish trendline on the hourly timeframe is also expected to support the pair at around the 1.1375 level. Odds of a bullish trend appear solid today, therefore the bullish violation at the 1.1445 mark could influence the EUR/USD prices, pushing them towards the 1.1490 level. Good luck! 


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