- Summary:
- The EUR/USD pair is up for the first two days ahead of the US jobless claims data. What should we expect it to do later today?
The EUR to USD (EUR/USD) pair is bouncing back as traders react to the relatively positive news from Europe. It is up for the first day this week and is trading at 1.2187, which is higher than this week’s low of 1.2130.
What happened: There were two positive news events last night. First, the UK and the European Union continued their Brexit deliberations with Boris Johnson and Ursula von der Leyen talking on phone. As such, because of the potential risks of a no-deal Brexit, there is a likelihood that the two sides will reach an agreement in the next few days.
Second, the EUR/USD is reacting to news that France has started to allow truck drivers to deliver goods to and from the UK. This is on condition that these drivers are tested for the virus. Other countries could follow the model used by France.
What next: Looking ahead, the EUR to USD will react to important numbers from the US. They will include the weekly jobless claims numbers, personal spending and income, and the mortgage market index numbers.
EUR/USD technical outlook
Turning to the four-hour chart, we see that the EUR/USD price is up for the second straight four-hour session. It is slightly above the lower side of the Bollinger bands and slightly above the important support at 1.2126. Therefore, for today, the pair will possibly rise to the middle line of the Bollinger bands at 1.2215.
EUR to USD technical chart
