EUR/USD faces tough resistance at 1.1920

EUR/USD surged to 1.1905, its highest in two weeks, as market players are quite optimistic at the beginning of the week on reports about vaccination plans in the northern hemisphere. The pair enjoys bullish momentum near a critical resistance at 1.1920, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Several countries announced plans to kick-start vaccination against COVID-19 as soon as possible. The US indicated mid-December and some European countries mentioning December/January as the possible date.”

“The EUR/USD pair faces strong resistance in the 1.1910/20 price zone, where it established intraday highs between October and November. Further gains beyond the mentioned resistance area expose the yearly high at 1.2011.” 

“The 4-hour chart shows that a flat 20 SMA provides dynamic support around 1.1860, while technical indicators advance within positive levels.”