The pair had touched the highest since 2018 yesterday. A lot of this primarily due to the weakness in the and Europe controlling the coronavirus situation much better than the U.S.
It is very much expected that the Fed isn’t going to leave the town any time soon which means that their monetary policy will remain accommodative far much longer than the current expectations. In addition to this, the economic numbers in the U.S. aren’t showing that much strength. And another reason, which is also keeping the dollar index under selling pressure, is that more stimulus help is still on the way.
There is no doubt that the RSI index has reached its overbought level on the daily time frame in terms of technical analysis. This means that we are highly likely to see some retracement in the coming days. Moreover, the price has also go too far and too quickly from its 50-day simple moving average on the daily time frame. However, it is important to keep in mind that the bulls are still very much in control of the price as the EUR/USD is still trading above the 50 , 100 and 200-day SMA on the daily time frame. The near terms resistance is at 1.2131, and the support is at 1.1963
EUR/USD Daily Chart
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