EUR/USD: Mildly bullish short-term stance lacks follow-through

The EUR/USD pair has a limited bullish scope despite holding near its daily high, as it remains below a descendant trend line coming from 1.1147, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“With the coronavirus pandemic still hitting the world, some European countries have started to turn on the tap, while others have announced that gradual openings will start next week. Same happens in the US, with some states easing lockdown measures.”

“In the 4-hour chart, the EUR/USD pair is above a now flat 20 SMA, while below the larger ones which offer mild-bearish slopes.” 

“Technical indicators have lost directional strength after crossing their midlines to positive levels. The trend line provides an immediate resistance at 1.0880, while sellers remain aligned around the 1.0900 price zone.”