Euro Latest: EUR/USD Well Placed to Hit 1.20 Level
EUR price, news and analysis:
- A meeting between German Chancellor Angela Merkel and regional governors Wednesday resulted in only a minor tightening of rules around gatherings and left all shops open.
- That is positive for EUR/USD, which is now well placed to hit “round number” resistance at 1.20 and the September 1 high at 1.2011.
- German and French consumer confidence data released Thursday came in below expectations but that has done nothing to hold the Euro back.
EUR/USD outlook positive
EUR/USD continues to trend higher, with “round number” resistance at 1.20 and the September 1 high at 1.2011 reasonable near-term targets for the pair.
EUR/USD Price Chart, One-Hour Timeframe (November 2-26, 2020)
Source: IG (You can click on it for a larger image)
There was positive news late Wednesday for the Euro as German Chancellor Angela Merkel agreed with the leaders of Germany’s 16 Federal states to extend and tighten measures against coronavirus until at leastDecember 20 but to leave the country’s shops and schools open.
Moreover, there was little reaction early Thursday to news that both German and French consumer confidence fell short of economists’ forecasts.
EUR/USD should also be helped near-term by the current move out of the safe-haven US Dollar into assets perceived as more risky on hopes that coronavirus vaccines and US economic stimulus will help the global economy to recover from the slump caused by the spread of Covid-19.
However, trading Thursday will likely be thin as US markets are closed for the Thanksgiving holiday.
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--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.