The EUR/USD Pair is Weakly Bullish
The EUR/USD pair rose at 1.1887 yesterday since the dollar decreased against its primary opponents. The market mood was mostly positive. However, news over the weekend reported that Oxford and AstraZeneca are continuing trials on their potential coronavirus vaccine. A thin economic calendar restricted big forex moves. The fact that no significant event has happened this week has kept investors cautious. As a result, significant pairs stay within normal levels.
The European Union released July’s industrial production, which exceeded expectations. Compared to 2019, it increased by 8.7%. Thus, showing better results than the expected 8%. The economic sentiment level is seen at 62.8 in the EU. It is below previous readings. The index is observed at 69.8 in Germany, still being lower than the earlier study. The United States published industrial production and capacity utilization notice. The index was 7.3% below its pre-pandemic February level.
Analysts Forecast a Bullish Move Towards 1.2011
Last week the United States dollar regained some strength. However, the Euro stood relatively well. Analysts are confident that in the long term, the EUR is in the bullish trend. Still, the problem for market bulls is the psychological level of 1.2000. It is a large round number and seems difficult to overcome. Despite the weakening of the U.S. dollar, there still is a consolidation between 1.1750 and 1.2000. In the short term, price action is weakly bullish. However, it consolidates slightly over the medium term.
EUR/USD pair was trading at the 1.1860 price zone, which was bullish for yesterday. Before the Asian opening, the pair lost the positive momentum but remained directed to the upside.
The momentum indicator turned lower. Meanwhile, the relative strength index stabilized positively, symbolizing limited selling interest. The pair peaked at 1.1917 last week. Analysts expect bullish expansion at 1.2011.
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