EUR / USD Current price: 1.0906
- World indices post substantial gains amid a slight improvement in the number of pandemics.
- German industrial production in February was better than expected.
- EUR / USD en route to 1.0950, a critical level of Fibonacci resistance.
EUR / USD approached the level of 1.0900 during this European session, as the market maintained the optimistic mood observed on Monday. Hopes have soared over the weekend due to the decreasing number of the two, new contagions and deaths from the coronavirus pandemic. Wall Street started the week with the top three indices each adding over 7.0%, which led to substantial gains in Asian and European stocks on Tuesday. Futures contracts in the United States are also on the rise, despite less positive news from the Old Continent, while the number of deaths in Spain has increased again.
Germany published industrial production on Tuesday, February, which rose 0.3% year-on-year against an expected backdrop of 0.9%. Compared with the previous year, production fell 1.2%, also better than expected. The US macroeconomic calendar has little to offer today.
EUR / USD short-term technical outlook
From a technical point of view, the EUR / USD pair is bullish, now above the 1.0900 threshold and pressuring the daily high before opening in the United States. The pair also exceeds the 50% retracement of its last bull run, with Fibonacci’s next resistance at 1.0950. In the 4-hour chart, the pair has moved past a now flat 20 SMA, which converges with the 61.8% retracement of the same advance at 1.0830. Technical indicators are progressing in positive levels, supporting further gains towards the mentioned level of static resistance.
Support levels: 1.0875 1.0830 1.0795
Resistance levels: 1.0910 1.0950 1.0990
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