EUR/USD to reach fresh highs beyond 1.2300

EUR/USD trimmed Thursday’s losses and hovers just ahead of the 1.2300 level as investors return to their desks. The pair maintains its bullish strength and could extend the advance beyond the mentioned 1.2300 mark, Valeria Bednarik, Chief Analyst at FXStreet, reports.

See – EUR/USD: Momentum slows sharply but the core trend stays seen higher for 1.2355 – Credit Suisse

Key quotes

“So far, coronavirus-related news has a limited impact on financial assets, with investors ignoring the sharp increase in contagions and the resulting restrictive measures, instead of maintaining the belief that economies will recover by the second half of this year on the back of immunization.”

“Markit published the final versions of its December Manufacturing PMIs for the EU, most of them downwardly revised from preliminary estimates. The German index was confirmed at 58.3 from 58.6 previously, while for the whole Union, the index resulted at 55.2.”

“The EUR/USD pair is neutral-to-bullish in the near-term, as the 4-hour chart shows that technical indicators have turned flat but within positive levels. The 20 SMA maintains its bullish slope currently at 1.2270, providing dynamic support.”