EUR/USD Looks to Solidify Base as Near-term Strength Returns

The EUR/USD exchange rate is looking to record its fourth successive daily close in the green, but the Euro is yet to convincingly restart its previous uptrend says analyst Richard Perry of Hantec Markets.

A rather choppy phase of trading for the euro has just begun to show signs of stabilisation.

Three positive closes in a row have come to firm the support around 1.1750 with the late August lows and the four month uptrend.

With the RSI turning higher again around the 50 mark this is a move that can still be considered to be an unwind within a broad uptrend.

For this to continue the support of 1.1750 needs to hold now.

Losing support would test 1.1695 as the key medium term support and at that stage a corrective drift could turn more considerable.

Hourly indicators reflect the near term minor improvement but needs to now move to hold initially above 1.1880 but then a close above 1.1915 is needed to generate sustainable improvement again.

The dollar has started the new trading week slightly on the backfoot, with a slightly improved appetite for risk forming this morning.

After causing a stir last week on a pause in its vaccination trials, the AstraZeneca/Oxford University collaboration for a COVID vaccine has resumed.

Although there has been little real move through bond markets, there is a mild improvement in equity markets and the dollar is slipping back.

This move may be tempered due to comments from Republican leaders over the weekend that suggested a fiscal package agreement seemed to not “look that good right now".

Having digested a dollar rebound and equities decline in recent weeks, broad markets have begun to form ranging conditions in recent sessions and this looks set to continue today.