EUR/USD: Upside to extend toward 1.20 psychological level

EUR/USD extends the upside beyond 1.19 the figure as the dollar weakens to two-year lows in the mid-92.00s on Tuesday. The next target is at the 2020 peaks near 1.1920, according to FXStreet’s Pablo Piovano.

Key quotes

“The generalized upbeat tone in the risk-associated space continues to dominate the sentiment among global investors, all underpinned by hopes of a coronavirus vaccine and the ongoing economic recovery.”

“Of note is the recent pick-up in the US-China trade/technology tensions, now resurfaced after the White House hinted at further restrictions to the Chinese telecom giant Huawei. Extra effervescence in the protracted US-China conflict carries the potential to spark occasional bouts of risk aversion, which should lend some (temporary) support to the buck and thus provoke some correction in the pair.”

“EUR/USD has surpassed the key resistance area in the upper-1.1800s on Tuesday, allowing for the continuation of the ascent to, initially, the YTD peak at 1.1916. If this area is cleared on a convincing fashion, then the next target of relevance is predicted to emerge at the psychological 1.20 yardstick. On the opposite side, the 1.1700/1.1690 band is expected to offer solid contention in case sellers regain control.”