EUR/USD: Struggling to run above 1.10

EUR/USD jumped against its American rival to a fresh multi-week high of 1.1030, boosted by the EU budget proposed by the European Commission. However, the pair is battling to run beyond 1.1000, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“EU Commission is proposing a 750 million euro recovery fund. Also, the next  EU budget proposed by the European Commission will be worth €1.1 trillion and will include the coronavirus recovery fund.”

“The short-term picture supports further advances, as, in the 4-hour chart, it has met buyers around its 20 SMA, which slowly gains upward traction. Furthermore, technical indicators turned firmly higher well into positive levels, maintaining its positive momentum near overbought levels.” 

“If EUR/USD losses the 1.0960 support, bulls will get discouraged and the pair would be at risk of a steeper decline.”