EUR/USD Forecast: Bulls maintain the pressure near 2020 high

EUR/USD Current Price: 1.2290

• Markit downwardly revised the December EU Manufacturing PMIs.
• Wall Street trades at record highs ahead of the opening, weighing on the greenback.
• EUR/USD maintains its bullish strength and may reach fresh highs beyond 1.2300.

The EUR/USD pair trimmed Thursday’s losses and hovers just ahead of the 1.2300 level as investors return to their desks. The American dollar is back under selling pressure as US indexes soar to record levels in pre-opening trading. The market is leaving Brexit behind and looking for a new focus. So far, coronavirus-related news have a limited impact on financial assets, with investors ignoring the sharp increase in contagions and the resulting restrictive measures, instead maintaining the belief that economies will recover by the second half of this year on the back of immunization.

Markit published the final versions of its December Manufacturing PMIs for the EU, most of them downwardly revised from preliminary estimates. The German index was confirmed at 58.3 from 58.6 previously, while for the whole Union, the index resulted at 55.2.  During the American session, Markit will publish the December US Manufacturing PMI, while Fed’s Bostic and Fed’s Evans will offer speeches.

EUR/USD short-term technical outlook

The EUR/USD pair trades around 1.2290, easing from a daily high of 1.2305. The pair is neutral-to-bullish in the near-term, as the 4-hour chart shows that technical indicators have turned flat but within positive levels. The 20 SMA maintains its bullish slope currently at 1.2270, providing dynamic support.

Support levels: 1.2270 1.2225 1.2180

Resistance levels: 1.2320 1.2350 1.2385

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