EUR/USD starts to recover its bullish potential

EUR/USD heads into the US opening trading around 1.2130 as dollar’s gains are limited despite the risk-off mood. Technically, the pair is recovering its bullish potential after correcting extreme overbought conditions, as FXStreet’s Chief Analyst Valeria Bednarik notes.

Key quotes

“News that UK Prime Minister Boris Johnson is willing to turn his back to the EU and leave the negotiation table spurred the dismal sentiment but fears cooled down on market talks suggesting that Brexit trade talks could continue until Wednesday.”

“Germany published October Industrial Production, which provided support to the shared currency as it rose by 3.2% MoM, beating expectations. The US session will be light in terms of macroeconomic data, as the country will only release  October Consumer Credit Change.”

“The EUR/USD pair has corrected oversold conditions in the short-term and is slowly recovering its bullish potential. The 4-hour chart shows that the price is back above a bullish 20 SMA, while technical indicators are bouncing from around their midlines. 

“The bullish potential seems limited, with risk-averse headlines providing opportunities to buy at lower levels.”