EUR/USD Holds In Long-Term Bullish Territory

For the eighth week in a row, the EUR/USD has been unable to leave the 1.1850 level. With factors such as the resurgence of COVID-19 in Europe and fresh Brexit tumult, forex players are treading lightly. Subsequently, rates have remained in consolidation largely between 1.1750 and the 1.2000 psychological barrier.

Late Thursday, reports from the World Health Organisation (WHO) suggested that COVID-19 infections are currently spiking to record numbers. WHO regional director Hans Kluge stated that “weekly cases have now exceeded those reported when the pandemic first peaked in March.” 

For the time being, the markets aren’t actively pricing-in Kluge’s ominous warnings. The fact is, the global testing apparatus is far more advanced that it was in March. More testing means more positive cases; comparisons between March data and September data are of little value. However, Kluge is right about one thing ― COVID-19 continues to spread with no end in sight.

Let’s take a look at the EUR/USD and see where this pair stands to end the week.

EUR/USD Holds Firm Within Long-Term Bullish Territory

The EUR/USD continues to trade sideways today, for the second straight week. Rates are hanging very close to 1.1850, well above any areas of intermediate-term support.

Here are a few levels to watch as we roll into late-September:

• Resistance(1): Psychological Barrier, 1.2010
• Support(1): Weekly SMA, 1.1641
• Support(2): 38% Retracement, 1.1485

Overview: Until we see a concerted test of downside support, a bullish bias remains warranted toward the EUR/USD. However, we are likely in for an extremely active fall season. If you’re actively trading this pair, be on the lookout for election, Brexit, and COVID-19 news. Although the EUR/USD is sleeping now, a directional move is likely to develop in the coming weeks.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

Related Articles

Gold Price Weekly Forecast: Will XAU/USD Break $3,370 as US Jobs, GDP Loom?

20 hours ago

Save

Forex Signals April 25: Will Trade Talks & Earnings Offer a Bullish Finish for DJIA?

2 days ago

Save

EUR/USD Holds $1.1306—Market Eyes ECB Cuts and Trump’s Trade Standoff

2 days ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments