EURO PRICE CLOSES IN AT CRITICAL 1.20 LEVEL
EUR/USD reached three-month highs above 1.1970 on early Monday. EUR/USD has fallen as far as 1.16 but for most of this month, the price has been creeping higher as news of coronavirus vaccines and central bank stimulus have raised hopes of an economic recovery.
EUR/USD hit the multi-day high during Monday's Asian session. The pair rose to the highest level in three months in just a few hours but couldn't cross the upper line of a five-week-old ascending triangle formation.
The bulls have been trying to get a close to the Sept. 1 high at 1.200, the psychological round figure mark which serves as a critical resistance. Considering the nearly overbought Stochastic conditions (92), the pair is likely to slip below 1.200. Any sign of weakness can be confirmed with a long wick formation .
However, amid any further weakness the pair is expected to slide beneath the stated triangle's support line, currently around 1.1880, before awaking the bears. Should EUR/USD prices drop below 1.1880 on a daily closing basis, November 11 swing low near 1.1775 and the monthly bottom close to 1.1620 will lure the sellers afterward.