EUR/USD to show bullish potential on a break above 1.1870

EUR/USD is trading with modest gains this Monday, in the 1.1850 price zone, mildly bullish according to intraday readings as the pair pressures the 1.1870 resistance in the way to the year high, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The week is starting in slow motion, with speculative interest concerned about economic growth amid the increasing number of global coronavirus cases. Over the weekend, the US reported fewer cases, just around 35,000 on Sunday, although the number is tricky amid the reduced number of tests.”

“The 4-hour chart shows that a bullish 20 SMA, provides dynamic support At 1.1815, advancing above the 100 SMA. Technical indicators in the mentioned time-frame have turned higher within positive levels, but lacking enough momentum and within familiar levels.” 

“The bullish potential will be clearer on a break above 1.1870, the immediate resistance.”