Euro bulls cannot force resistance, what’s next for the main currency pair?
EURUSD surged after the US elections but the full move was contained in the consolidation range that has arrested the pair since late July. Vaccine optimism seemed to favour euro slightly but it was not enough for the pair to make it above 1.19. To the contrary, two daily pinbars just below the resistance zone could be a warning sign that at that level there’s no demand – at least at the moment. Also bear in mind that net speculative positioning remains elevated, adding to the downside risk. Key support zone is located at 1.16.
