FX.co ★ EUR / USD prospects on long-term bullish position

The main pair of the Forex market on Monday went above 1.1400 and approached the March highs. It is important that it will also be able to close in the area of these marks. Given that traders now prefer to believe only in the good and in a positive outcome of the negotiations on the creation of a single stimulus fund for the EU economy, the mark of 1.1490 and above can be a potential target.

Nevertheless, while European politicians have not been able to reach an agreement, the negotiations have reached an impasse. The debate continues today, and the markets live in hopes that a compromise will be found. However, the absence of a single political solution is evident, and this again raises the question of the expediency of the existence of a union of European countries. Such reasoning may well spoil the sentiment of the euro buyers, who are having a hard time staying above 1.1450.

EUR / USD

It should be noted that the meeting of the EU leaders started on Friday. Traders expect the summit to agree on a multi-year budget of more than 1 trillion euros and a recovery plan for the countries most affected by the coronavirus. The amount of aid, according to Brussels, should be 750 billion euros.

Meanwhile, some experts believe that the EU deal on the fund will not be enough for the further growth of the euro. This is a short term factor. It will be priced and forgotten. Deutsche Bank recommends paying attention to the discrepancy in macroeconomic indicators of the United States and Europe, where the latter is recovering from a pandemic, and the United States sets a daily record for the increase in infected people almost every day. This may support the influx of portfolio investments in European assets, which means there is a reason to take a bullish position in euros in the coming months.

As for the short-term outlook, the EUR / USD pair has broken through the important level of 1.1430 today and continues to consolidate around it. Further, a correction link is possible as a maximum to the level of 1.1340. After working out the downward movement, the buyers of the euro are able to push the rate above 1.15.