EUR/USD: Caution for bearish traders

Optimism over slowing coronavirus cases/deaths eases some bearish pressure on the EUR/USD pair, FXStreet’s analyst Haresh Menghani informs.

Key quotes

“The lack of any strong follow-through selling now warrants some caution for bearish traders. Hence, it will be prudent to wait for a sustained weakness below the 1.0775-70 region before positioning for any further near-term depreciating move.” 

“On the flip side, any subsequent recovery is likely to confront some fresh supply near the 1.0900 round-figure mark. A convincing break through might trigger a fresh bout of a short-covering move and lift the pair further towards 50-day SMA, around the 1.0970-75 region.”