Technical Chart pick of the day: EURUSD – Bullish
The Euro remains upbeat following relaxation of lockdown measures across the continent and a new Franco-German proposal for a EU aid package to help recovery.
Last night, during the testimony before the Senate Banking Committee, FED chairman Powell pressed for further fiscal support reinforcing previous statements that The Fed is prepared to use its full range of tools and leave the benchmark lending rate near zero until the US economy is back on track but more help is still needed by the Trump administration and Congress as risk appetite grows back weakening the dollar.
· On a technical perspective, the trend is bullish, with prices above the 20, 40, 100 and 200 EMAs
· Prices failed to break below the 20 EMA and rebounded. This indicates that buying strength is present.
· Based on the pivot point analysis, prices are above the pivot levels. This signifies bullishness.
Resistance: R1: 1.09644, R2: 1.10070, R3: 1.10808
Support: S1: 1.08906, S2: 1.08594, S3: 1.07856