EUR/USD: Bulls to gain some ground on a break above 1.1770

The EUR/USD pair is about to challenge the 1.1770 resistance level as is trading around 1.1760 ahead of the US opening, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The American dollar is under selling pressure amid a better market mood. News’ feeds were flooded by headlines related to US President Trump’s health after he announced he contracted COVID-19 last Friday. The latest news suggests that he may leave hospital as soon as today, the main support for the upbeat sentiment.”

“Markit published the September final Services PMIs for the Union, which were revised higher for most economies, except for Spain. The EU index resulted at 48, better than the previous estimate of 47.6, although still signaling economic contraction. The Composite PMI came in at 50.4 from 50.1.”

“The 4-hour chart shows that the bullish potential is limited, as the EUR/USDpair is struggling to surpass a mildly bearish 100 SMA, although holding above a flat 20 SMA. Technical indicators, in the meantime, hold within positive levels, but without clear directional strength.” 

“Bulls could have better chances on a break above 1.1770, the immediate resistance level.”