EUR/USD to fall below the 1.2000 level

EUR/USD has extended its decline to 1.2004 during European trading hours, as optimistic investors keep buying the greenback. The pair is trading near the daily low, poised to challenge the 1.2000 threshold, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The upbeat sentiment gyrates around hopes that the US government will manage to pass a new, large stimulus program. Coronavirus vaccines are also generating optimism, amid positive news related to the UK AstraZeneca shot and the Russian Sputnik V, both highly effective in preventing serious COVID-19 cases.”

“Markit published the final versions of the EU Services PMIs, with the German one downwardly revised to 46.7. The EU final Composite PMI for the month was confirmed at 47.8.”

“The downside is favored according to the 4-hour chart, as the pair fell further below bearish moving averages. Technical indicators head firmly lower near oversold readings, but without signs of exhaustion.”