EUR/USD ready to test the critical resistance level of 1.1870

The EUR/USD pair has extended its weekly advance to 1.1870 this Wednesday, amid persistent dollar’s weakness, and could regain the 1.1900 threshold, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Talks about a US stimulus aid package provided support to the high-yielding EUR, as US Treasury Secretary Steven Mnuchin and House Leader Nancy Pelosi reported progress in trade talks, and said they would continue negotiations this Wednesday.”

“The 4-hour chart shows that the advance extended above all of the moving averages, while the 20 SMA accelerated north and crossed above the larger ones. Technical indicators, in the meantime, maintain their bullish slopes, despite being in overbought territory. 

“A break through 1.1870 should see the EUR/USD pair regaining the 1.19 threshold during the upcoming sessions.”