- EUR / USD remains an offer amid a massive sale of US dollars.
- Gold is approaching the record of $ 1,920 reached in September 2011.
- Daily EUR / USD RSI shows overbought conditions.
EUR / USD jumped to a new 22-month high of 1.1691 shortly before press time, having risen 2% last week.
The pair posted solid gains last week and is a better deal as of press time despite a fragile risk sentiment. Escalating tensions between China and the US, lingering concerns about the virus, and the US’s inability to deliver the additional coronavirus package weakened last week.
Generally, the US dollar, a global reserve, attracts refuge offers during risk reduction. This time, however, the dollar has taken a beating against the EUR. The recent decision by the European Union to approve a historic fiscal stimulus appears to have established the common currency as a safe haven.
From a technical analysis perspective, the pair is overbought with a 14-day relative strength index ranging at 80. So far, however, there are no signs of buyer exhaustion on the price chart. Also, there are no signs of a rebound in the dollar in other markets. Remarkably, gold is now only $ 3 below setting a new lifetime high above $ 1,920 (September 2011 high).
As such, the path of least resistance for the EUR / USD continues to the upper side. The main resistance is at 1.1815 (maximum of September 24, 2018).
On the bottom side, the session low of 1.1641 is the level to beat on their own. A violation there in the next few hours would validate the overbought reading on the RSI and produce a deeper pullback to the 10-day simple moving average at 1.1510.
Daily chart
Trend: Bullish
Technical levels
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