EUR/USD to confirm bullish potential at the 1.2277 year high

EUR/USD advanced to a fresh weekly high just above the previous one in the 1.2260 region but lacks momentum. Bulls would gain ground if the pair reach fresh year’s highs at 1.2277, FXStreet’s Chief Analyst Valeria Bednarik informs.

Key quotes

“The American dollar weakens as equities surge, these last impulsed by news that the US Congress is working on expanding direct coronavirus relief payments from $600 to $2,000. The House passed a bill that now needs Senate approval. Meanwhile, the EU and China are working on a business investment deal that could be finalized this week and will give EU firms better access to the Chinese market and improve competition conditions.”

“Bulls will have better chances should the pair advance beyond 1.2277, this year high, as thin market conditions could exacerbate the breakout.”