The EUR to USD (EURUSD) price is up slightly today, continuing a trend that started three weeks ago. The pair is trading at 1.1970, which is only a few pips below this year’s high of 1.2015.
There are several reasons why the euro has risen for the past three straight weeks. First, the recent victory by Joe Biden has increased the possibility of a smooth relationship between the US and Europe.
Indeed, over the weekend, EU leaders pitched a new framework of cooperation between the two sides as they try to limit China’s influence. The two sides will collaborate on various aspects such as technology to tackling the pandemic.
The EURUSD has also risen because of a potential deal between the EU and the United Kingdom. While differences between the two have remained, there is a higher probability that a deal will ultimately happen.
Most importantly, the EUR to USD has risen because of the overall weaker US dollar. The dollar has declined against most currencies, pushing the DXY to the lowest level since September.
EURUSD technical outlook
Turning to the daily chart, we see that the EURUSD is just a few pips below the YTD high of 1.2015. The price remains above the 25-day and 15-day moving averages while the Stochastic oscillator has continued to rise. This is a sign that bulls are returning to the euro, which will possibly lead to a break-out in the coming days. If this happens, the next level to watch will be 1.2015 followed by 1.2050.
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EUR to USD technical chart
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