FX.co ★ EUR/USD analysis for June 19, 2020 - Potential for the bigger rally on the EUR due to potential end of the downward correction...

News:

EU leaders are gathering virtually for a video summit that is attempting to find consensus for an ambitious €750bn (£676bn; $840bn) EU coronavirus recovery fund.

Several northern European nations are unhappy about the EU commission plan because it involves collectively raising €500bn as grants for countries worst hit by the pandemic, notably Italy and Spain.

A group known as the "frugal four" – Sweden, Denmark, Austria and the Netherlands – have made clear their continued opposition to grants, rather than loans. There are also divisions over the proposed €1.1tn EU budget.

Technical analysis:

EUR/USD has been trading sideways at the price of 1,1210. The EUR is trading in well defined short-term up trend and I do expect upward continuation based on the daily time-frame towards the levels at 1,1335 and 1,1400.

Trading recommendation:

Watch for potential buying opportunities with the potential stop at 1,1180.

I found that there is test and reject of the 20 EMA on the daily time-frame.

Support level is set at 1,1180 and 1,1150