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EUR/USD Forecast as US Stimulus and Brexit Talks Advance

EURUSD
EURUSD

The EUR/USD is in a tight range as the mood in the market remains jubilant. In Europe, Brexit talks will go on for the next few days as the two sides attempts to reach an agreement. In the United States, Pfizer has already started ramping up production and delivery of its vaccine.

Similarly, stimulus talks have continued as a team of bipartisan legislators press-on on their plan. Steve Mnuchin and Nancy Pelosi also continued their deliberations during the weekend. Therefore, while Mitch McConnel still opposes a $900 billion stimulus, rising political pressure will possibly cause him to cave-in.

The EUR/USD will have a mild reaction to EU’s industrial production data that will come out at 13:00 GMT. These numbers will possibly show that production increased by 2.0% in October after dropping by 0.4% in the previous month. The production will still be 4.4% below the same level in 2019.

EUR/USD forecast

The EUR/USD is trading at 1.2131, which is slightly higher than last Friday’s low of 1.2100. On the hourly chart, the pair has moved above the 25-period and 15-period exponential moving averages. It is also slightly above the red ascending trendline that connects the lowest levels in December.

Therefore, the pair will possibly continue rising as bulls aim for the next resistance level at 1.2150. On the other hand, a move below the support at 1.2100 will invalidate this trend. It will mean that there are still bears in the market who will be keen to push it lower.

EUR/USD technical chart

EUR/USD