EUR/USD: Bulls take a breath but retain control

EUR/USD eased from a 22-month high of 1.1781 and has bottomed for the day at 1.1698, from where the pair is slowly recovering as it retains its bullish stance in the short-term, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The technical stance is bullish despite the ongoing bearish correction, as, in the 4-hour chart, the pair continues to develop above a sharply bullish 20 SMA, which currently stands at 1.1660 providing dynamic support. The larger moving averages gain strength upwards below it, while technical indicators are regaining the upside after correcting extreme overbought conditions.”

“The US Senate Republicans presented their coronavirus relief proposal. It includes another round of $1,200 in direct payments to individuals, more money for the Paycheck Protection Program, a reduction in federal unemployment benefits from $600 to $200, and more than $100 billion for reopening schools. That said, it’s just a proposal that has yet to get the approval of Democrats.”