EUR/USD has been rising in response to optimism about a coronavirus vaccine but the lockdown-related slowdown and political uncertainty limit the upside move. Meanwhile, Monday’s 4-hour chart is showing a bullish bias and a well-defined range, Yohay Elam an Analyst at FXStreet, reports.
Key quotes
“Investors received another shot in the arm, this time from AstraZeneca and the University of Oxford. The British immunization project reported an efficacy of 70% on average – and 90% for a lower dose of regiment. Injecting 1.5 doses instead of two proved more efficient. If the interim results are confirmed, it could mean being able to vaccinate more people.”
“The winter wave of coronavirus has prompted governments to impose restrictions and these are taking their toll. Markit’s preliminary Purchasing Managers’ Indexes for November have all dropped, with services sectors contracting at a faster clip, weighing on the euro. France, which announced a stricter lockdown, is doing worse than Germany.”
“Outgoing President Donald Trump has been unsuccessful in his bid to overturn the election results, suffering blows in Georgia and Pennsylvania. Reuters has reported that Trump intends to slap new sanctions on Chinese companies, potentially boosting the safe-haven dollar.”
“EUR/USD is trading within a well-defined range between the double-bottom support at 1.1815 and 1.1895, a double-top. Both levels were last tested last week. Above 1.1895, the next lines to watch are 1.1920 and 1.2010. Support awaits at 1.1850, which was a cushion late last week. Below 1.1815, the next level to watch is 1.1780.”
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