FX.co ★ Technical analysis of EUR/USD for November 26, 2020

Overview :

The EUR/USD pair has extended its gains, nearing 1.1941 (double top on the H1 chart).

Euro/Dollar : with optimism for vaccines and the peaceful transfer of power in the Europe continues at its highest price, nearly two or three months ago.

The EUR/USD pair continues to move upwards from the level of 1.1898. Today, the first support level is currently seen at 1.1898, the price is moving in a bullish channel now.

Furthermore, the price has been set above the strong support at the level of 1.1898, which coincides with the 78% Fibonacci retracement level. This support has been rejected three times confirming the veracity of an uptrend.

According to the previous events, we expect the EUR/USD pair to trade between 1.1898 and 1.1977.

It may witness a further upward expansion if it comes with a report the Fed is a negative interest tone, but any gains in the euro against the dollar will not be far from the Coronavirus (COVID-19).

So, the support stands at 1.1898, while daily resistance is found at 1.1977. It should be noted that volatility is very high for that the EUR/USD pair is still moving between 1.1898 and 1.1977 in coming hours.

This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.1941 and further to the level of 1.1977.

Therefore, the market is likely to show signs of a bullish trend around the spot of 1.1898. In other words, buy orders are recommended above the spot of 1.1898 with the first target at the level of 1.1977; and continue towards 1.2006.

At the same time, if a breakout happens at the support level of 1.1867, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.