EUR/USD Surges To New Highs

EUR/USD Surges To New Highs

The EUR/USD is traded within a tight range for more than a week.

But yesterday the pair bounced from a major support level 1.0800 while the U.S dollar is getting weaker. There are 3 reasons for the positive turnaround in the euro.  Some European countries are pushing to establish a recovery fund for EU members. Germany and France already agreed on a reconstruction plan worth €500 billion. 

That means more stimulus measures for EU countries. The market reacted to the positive result from a new vaccine in a human trial. The first vaccine that was tested in humans appears to be safe and able to generate an immune-system response to coronavirus. 

This news pushed the safe-haven dollar to the downside and other assets such as stocks and currencies to the upside so the EURUSD is benefiting from a weaker dollar. The EU countries have widely started reopening their economies recently. All this together might push the EURUSD towards 1.1000 major resistance and possibly higher. 

These charts and the opinions above are for educational and informational purposes only. Technical analysis does not guarantee full accuracy and it could be subject to revision over time. We do not have any liability regarding financial results based on the use of this information.

EUR/USD Surges To New Highs
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