- EUR / USD advanced for the fourth consecutive session amid a sustained selloff of the USD.
- The disappointing US macroeconomic releases did little to provide respite for USD bulls.
- Mild overbought conditions could become the only factor limiting earnings.
The pair EUR/USD it maintained its strong pitch offered during the early North America session and soared to fresh multi-year highs, levels just above 1.2250 in the last hour.
Bearish pressure surrounding the US dollar did not abate on Thursday amid rising prospects for further US fiscal stimulus measures. In fact, Congressional negotiators were reported to be closing in on a $ 908 billion COVID-19 aid package.
Aside from this, optimism about the launch of vaccines for the highly contagious disease coronavirus and a last-minute Brexit deal continued to support market optimism. Market optimism further undermined the dollar’s safe-haven demand.
The dollar remained depressed after Thursday’s disappointing macroeconomic releases from the US: initial weekly jobless claims and the Philadelphia Fed Manufacturing Index. This is due to the dovish statement from the FOMC on Wednesday and did little to provide a respite for the USD.
On the other hand, the shared currency was supported by data on Wednesday, which indicated that the region’s economy is beginning to stabilize and that the recovery is gaining ground. This, in turn, continued to support the ongoing positive movement of the EUR / USD pair.
Meanwhile, technical indicators on short-term charts are already showing slightly overloaded conditions and preventing investors from making further bullish bets. This could turn out to be the only factor limiting the gains of the EUR / USD pair, at least for the moment.
That said, the short-term bias remains firmly in favor of bullish traders. Therefore, any significant pullback could be seen as a buying opportunity and remain limited. However, the EUR / USD pair appears poised to extend its recent bullish trajectory.
Technical levels
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