EUR/USD still sees a limited bullish potential

A better market mood has helped EUR/USD to recover the 1.1800 mark, now trading near a daily high in the 1.1849. Nonetheless, the pair lacks momentum enough to confirm a bullish extension, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The market is optimistic about a promising coronavirus treatment, the use of convalescent plasma, which was approved by the FDA. The treatment was already being used in some other countries.”

“The 4-hour chart shows that EUR/USD is struggling to surpass a bearish 20 SMA, while technical indicators have advanced within negative levels, now losing momentum ahead of their midlines.”

“The pair could ease in the American session, but the bearish case will become clearer on a break below the 1.1770 support. Bulls, on the other hand, will take their chances on a break above 1.1870.”