EUR/USD rally remains well and sound to test the 1.20 level

EUR/USD has surpassed the key barrier at 1.19 the figure and advanced to fresh tops near 1.1970 on Tuesday, just to face some correction lower so far on Wednesday. The FOMC minutes due later today could set the tone for the dollar while the 1.20 level is just around the corner, FXStreet’s Pablo Piovano reports.

Key quotes

“Investors’ preference for riskier assets remains bolstered by hopes of a quick and strong economic recovery as well as the development of a COVID-19 vaccine.”

“The greenback is forecasted to remain under the microscope in light of the release of the FOMC minutes later in the NA session.”

“The continuation of the bull run should see the psychological 1.20 neighbourhood re-tested in the short-term horizon. On the opposite side, the pair is navigating the overbought territory, which could morph into some interim correction in the near-term. That said, the 1.1700/1.1690 band is expected to offer solid contention in case sellers regain some (temporary) control.”