The EUR/USD pair has been trading within bearish channel range since the middle of current April, as the pair price movement fell from 1.09878 level to 1.07262, which is the lowest level the pair reached in current April.
When we look at EUR/USD pair chart – 60 Minutes – we will find the pair price movement rebounded from the horizontal support level 1.07450 and the support line of the bearish channel.
After the rebounding, the EUR/USD pair price movement went in its way to breaches the resistance line of the bearish channel. The pair price movement already succeeded in this breaches and trades outside the bearish channel to go after that to test the horizontal resistance level at 1.08332.
As we can see from the chart, the pair price movement is trying to breach the horizontal resistance level at 1.08332, where the EUR/USD pair is currently trading near this level at 1.08348.
- The current horizontal support level for EUR/USD pair is 1.07450.
- The current horizontal resistance level for EUR/USD pair is 1.08332.
- It is positive for EUR/USD pair to trades above the bearish channel range.
- It is positive for EUR/USD pair to trades above 1.08332 (Horizontal Resistance), while it is negative for EUR/USD pair to trades below this level.
The Euro has the positivity more than the US dollar with the first trading session of the week due to:
- Many European countries are witnessing a decline in the number of people infected with the Coronavirus.
- Many European countries are preparing to lift restrictions on the economy and reduce the precautionary measures imposed gradually starting next May.
- The weakening of dollar at present is considered a catalyst to raise the euro against the dollar, where the United States is witnessing the highest rate of jobless claims ever (26 million applications), as well as the highest rates of Coronavirus infection in the world.