EUR/USD Outlook As Europe’s Vaccination Program Picks Up Pace

EUR/USD is trading higher as the Eurozone makes progress in its COVID-19 vaccination program. Initially, the drive was characterized by shortages in the vaccine supply and concerns over serious side effects of AstraZeneca’s jab.

In France, the AstraZeneca vaccine is now available to everyone above 55 years of age. Besides, it is set to start rolling out the Johnson & Johnson jab this week. Furthermore, Germany doubled its daily vaccinations while Italy is expected to curb the enacted lockdown measures. The progress in Europe’s vaccination drive has heightened investors’ confidence in the economic recovery of Western Europe.    

EUR/USD will be reacting further to tomorrow’s ZEW economic sentiment data from Germany and the larger Eurozone. During the same session, the US core CPI numbers are scheduled for release.

EURUSD Technical Outlook

On a 2-hour chart, EUR/USD I trading above the 20 and 50-day exponential moving averages. Besides, it has formed a rectangular pattern that spans from a week ago. Notably, the pair has found support at 1.1860. Overall, the technical outlook is relatively bullish.

At its current price of 1.1906, EUR/USD is targeting the two-week high of 1.1928. If it experiences resistance at that point, it will probably remain range-bound in the near term. However, an increase in buying pressure will place the next targets at 1.1950 and 1.1989. On the flip side, a move below 1.1850 will have the bears testing the psychological level of 1.1800.

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