EUR/USD to see further gains on a break above 1.18

The EUR/USD pair is up this Monday, approaching the 1.1800 area, as hopes for a US coronavirus stimulus package is weighing on the dollar. The pair is bullish in the near-term, as FXStreet’s Chief Analyst Valeria Bednarik notes, and could extend the rise on a break above the mentioned 1.18 mark. 

Key quotes

“The greenback is being pressured by mounting hopes about a US stimulus package and encouraging Chinese data published at the beginning of the day. US representatives are working on some fiscal aid although it’s still unclear whether they will be able to clinch a deal. As per China, it reported Q3 GDP at 4.9% slightly below the 5.2% expected but above the previous 3.2%.”

“EUR/USD is bullish in the short-term, as, in the 4-hour chart, technical indicators firmly advance above their midlines. Also, the pair has advanced above all of its moving averages, which anyway lack directional strength. 

“The 1.1800/10 area is the immediate resistance that the EUR/USD pair needs to surpass to confirm further gains in the upcoming sessions.”