The EURUSD pair opened the day higher as risk-on flows led to a weakening US dollar. Markets remain focused on the Biden stimulus package, which could come soon since the Trump's trial is now over.
The economic calendar for today showed that industrial production in the eurozone missed expectations (-1.6% vs -0.4%), while trade balance numbers came in better than expected. The EURUSD pair was mostly unchanged following the reports.
The 2-year yield differentials between the US and Germany (as a proxy for the eurozone) show a bullish divergence, which could also support the pair.
Looking at the currency strength chart, both the EUR and the USD are mostly performing the same. However, risk currencies are top performers for the day, while safe-havens (like the JPY) are weakening, signaling that EURUSD could trade higher in the coming period.
== SUMMARY ==
Looking at technicals, the 1.2150 remains an important resistance level that has to fall for further upside potential. To the south, the 1.2080 level and the 1.2110 level could provide support and could be used to open or add to existing long positions.
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The economic calendar for today showed that industrial production in the eurozone missed expectations (-1.6% vs -0.4%), while trade balance numbers came in better than expected. The EURUSD pair was mostly unchanged following the reports.
The 2-year yield differentials between the US and Germany (as a proxy for the eurozone) show a bullish divergence, which could also support the pair.
Looking at the currency strength chart, both the EUR and the USD are mostly performing the same. However, risk currencies are top performers for the day, while safe-havens (like the JPY) are weakening, signaling that EURUSD could trade higher in the coming period.
== SUMMARY ==
Looking at technicals, the 1.2150 remains an important resistance level that has to fall for further upside potential. To the south, the 1.2080 level and the 1.2110 level could provide support and could be used to open or add to existing long positions.
Please hit the "LIKE" button if you find this post useful. Also, don't forget to follow to get more trade ideas like this. Thanks!
