EUR/USD to gain bullish momentum on a break of the 1.2177 year high

EUR/USD is holding on to gains triggered by risk appetite though fresh lockdowns in the Union put a cap on EUR’s gains. According to FXStreet’s Chief Analyst Valeria Bednarik, bulls may challenge the year’s high at 1.2177.

Key quotes

“Brexit-related headlines keep coming, and despite differences persist, it seems that the UK and the EU won’t give up on reaching a post-Brexit trade deal.”  

“So far, investors remain optimistic, with the good mood also underpinned by hopes for a US stimulus package, although no fresh news came from that front. News that several European countries are imposing fresh lockdowns to prevent the coronavirus contagions put a cap on EUR’s gains.”

“The 4-hour chart shows that the EUR/USD pair keeps developing above all of its moving averages, although the 20 SMA is flat around 1.2120. Technical indicators remain near their daily highs but lost their strength and slowly turned south.”

 “The bullish case will be firmer on a break above the 1.2180 area, as this year’s high stands at 1.2177.”