FX.co ★ EUR/USD analysis for December 04 2020 - Strong upside breakout and potential for test of 1.2400

The report says that ECB policymakers would likely agree to extend PEPP by a full year if that is proposed at the meeting next week.

Adding that several members of the governing council would support such a proposal, even those who have a personal preference for a six-months extension.

That said, the sources also reveal that there might still be a possibility of dissent as there is concern that such extending the program to the middle of 2022 would reveal unwarranted assumptions about the post-pandemic economy.

There is also a suggestion that they could go with a 12-month extension with the option to reduce it again if the recovery proves stronger than expected.

Further Development

Analyzing the current trading chart of EUR/USD, I found that this week is the breakout week of the multi week balance in the background, which is strong sign of the upside continuation of the trend.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Platinum and Lumber today and on the bottom Ethanol and Feeder Cattle.

EUR is positive on the list today.

Key Levels:

Resistance: 1,2400

Support level: 1,2000