EUR/USD Forecast: Poised to challenge the 1.1965 year high

EUR/USD Current Price: 1.1936

• German August inflation missed the market’s expectations according to preliminary estimates.
• The sentiment improved during Asian trading hours, the dollar remains weak.
• EUR/USD bullish in the short-term and poised to challenge the year high.

The EUR/USD pair is up this Monday, trading not far below a daily high of 1.1940. Market players are optimistic amid upbeat Chinese data released at the beginning of the day, alongside news indicating that the country has given a local coronavirus vaccine an emergency approval and started using it.

The shared currency remains strong, despite the preliminary estimate of August German inflation missed expectations. The annual reading came in at -0.1%, while the monthly CPI printed at -0.2%. Ahead of Wall Street’s opening, Fed’s vice-chair Clarida is offering a speech, while the country will later publish the Dallas Fed Manufacturing Business Index for August, previously at -3.

EUR/USD short-term technical outlook

The greenback is only up against the JPY, mostly weak, which left the doors opened for fresh yearly highs in EUR/USD. The short-term picture is bullish, as, in the 4-hour chart, the pair is developing well above all of its moving averages. The 20 SMA is advancing above the 100 SMA, reflecting the increasing buying interest. Technical indicators, in the meantime, resumed their advances, maintaining their bullish slopes near overbought readings.

Support levels: 1.1905 1.1870 1.1825

Resistance levels: 1.1965 1.2010 1.2050

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