20.11.201900:55 Forex Analysis & Reviews: Account for EUR/USD: 1:0 in favor of the euro

A new week began on a positive note for the European currency, which cannot be said about the US one. The greenback noticeably lost heart, although it was not going to give up. However, it is with respect to the euro that experts predict a rise.

The recovery of the euro after recent failures was slow, and this process is still ongoing. Last week, the EUR/USD pair focused near an important psychological level of 1.1000, and then there was a surge in volatility, pulling down the euro to its previous positions and giving odds to the dollar. On Monday, November 18, the EUR/USD pair was trading at around 1.1062–1.1065, stuck at this level for a while. However, on Tuesday morning, November 19, the pair's quotes moved up, reaching 1.1080–1.1081.

According to some analysts, in this framework, the EUR/USD pair is held by conflicting events that form the geopolitical and economic background. Weakening of the US currency, as well as positive news regarding the prospects of Brexit play into the hands of the euro. At the same time, the Bundesbank report on German GDP for the third quarter of 2019 became a negative factor for the single currency. Weak data unsettled the euro, although it did not lead to its collapse. According to the report of the German central bank, a slowdown in the country's economy and some stagnation are possible in the fourth quarter of this year. At the same time, experts emphasized that the slowdown in the German economy will be short-lived, and the concern about the recession noted earlier does not make sense. Such a fluctuation between positive and negative put a little pressure on the euro and suspended the EUR/USD pair's growth.

Regarding the US currency, experts agree that the unconditional leader of the foreign exchange market will have to squeeze and at some point give up their positions. Analysts do not exclude that this retreat will be short-lived, as the market still believes in the power of the dollar. In case of greenback weakening, which will occur no earlier than next year, the EUR/USD pair may reach 1.1600. According to experts, the immediate goal of the pair will be the 1.1093 bar.

Currently, the EUR/USD pair seeks to conquer this peak, but the goal is still unattainable. Now the pair runs near the indicators 1.1077–1.1078, climbing higher from time to time. However, staying at the conquered heights does not work, experts say.

Moreover, the EUR/USD pair fell to the levels of 1.1070–1.1071 at the moment, causing concern for market participants. However, the pair has not yet been able to find the bottom.

For a long time, the European currency was in limbo, but now the situation has stabilized. The risks associated with the "hard" Brexit were smoothed out a bit, the probability of another rate cut came close to zero, and the euro found the long-awaited calm. In this regard, the market has hopes for a further rise in the single currency. Experts are certain that the current upward trend in the euro will continue.