GENERAL VIEW: The pair sets the new highs this time as the market is forming a bullish uptrend in the market. We can see US stimulus package over the weekend may see the pair extends gains. The pair is technically bullish but however, we can see the bears are attacking the market and try to take the market moment in their hands. A sour market’s mood helped the greenback amid the lack of progress in Brexit negotiations and US stimulus talks. Nevertheless, discussions on both extended into the weekend, keeping the high-yielding EUR near the year’s high.
The EUR/USD pair is overbought in the daily chart, with the risk still skewed to the upside, as it continues to 0 bulls retain control, as a bullish 20 SMA keeps providing intraday support, with buyers jumping in on approaches to it. Technical indicators resumed their advances after correcting within positive levels. The upwards rise is can be expected more in the coming terms. The bears are pulling the market but the bulls have their full aggression in the market we can say the bullish trend is being predicted further. EUR/USD surpassed 1.2000 and traded to a new 2020 high at 1.2272.A major bullish trend line is forming with support near 1.2180 on the 4-hours chart.
TECHNICAL REASON: From the technical point of view, we can say that EUR/USD prices are declining towards an upward sloping trend line but we can hope for the corrective recovery to cross 1.2240 level. The market bulls are going to lead in the coming market. We can see the clear target for EUR/USD bulls to lead the months high and there is no fundamental reason why that should not be challenged even if the ECB tries hard to subdue the Euro to lift the Euro zone’s inflation rate. On the daily chart, the bulls are leading the market and the minor downfall can be seen but short the short period of time the RSI is also having strong bullish momentum and MACD will also rise above zero line creating buy signals. We can suggest our investors to sit on the buy-side in the market and play the game at the front foot. The major EMA lines are also trading above 200 SMA lines in the market. The support level of the market is 1.2100 followed by 1.2049 and resistance is 1.2300 followed 1.2353.
Trade idea: we can go for buy at level 1.2185 target will be 1.2280 -1.2380. Stop loss will be 1.2095.
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