EUR/USD poised to challenge the year high

The EUR/USD pair is up this Monday, trading not far below a daily high of 1.1940. The dollar remains weak as is only up against the JPY, which left the doors opened for fresh yearly highs in EUR/USD, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Market players are optimistic amid upbeat Chinese data released at the beginning of the day, alongside news indicating that the country has given a local coronavirus vaccine an emergency approval and started using it.”

“The shared currency remains strong, despite the preliminary estimate of August German inflation missed expectations. The annual reading came in at -0.1%, while the monthly CPI printed at -0.2%. Ahead of Wall Street’s opening, Fed’s vice-chair Clarida is offering a speech, while the country will later publish the Dallas Fed Manufacturing Business Index for August, previously at -3.”

“The short-term picture is bullish, as, in the 4-hour chart, the pair is developing well above all of its moving averages. The 20 SMA is advancing above the 100 SMA, reflecting the increasing buying interest. Technical indicators, in the meantime, resumed their advances, maintaining their bullish slopes near overbought readings.”