EUR/USD Underpinned By US Fiscal Impasse And Crawling Sino-US Anxieties

Major aspects of this news are summerize below-

• EUR/USD rises 0.17% despite overbought readings on technical indicators.
• Record bullish bets also make EUR vulnerable to a pullback.
• The downside looks muted at best with investors focused on fiscal deadlock in Washington.

EUR/USD rally looks overdone as per the technical indicators, however, a notable pullback could still remain elusive, as a fiscal impasse in Washington is likely to keep the dollar bulls at bay. The pair is trading at 1.1860 at press time, representing a 0.17% gain on the day. The weekly chart relative strength index is hovering above 70, indicating overbought conditions for the first time in over 2.5 years. Yes, You read that right mate. That, coupled with the all-time high bullish bets, makes the shared currency vulnerable to a setback. However, stalled coronavirus stimulus negotiations in Washington and simmering Sino-US tensions may keep the dollar under pressure and restrict losses in EUR/USD at least that’s what the expert analysts of TopAsiaFX.com have to say. Movin on, Lawmakers from both the House of Representatives and the Senate have largely returned to their home states for August recess, according to a report by Forbes. As such, the much-anticipated stimulus is likely to remain elusive at least until September, when lawmakers will return to work. Meanwhile, the US and China delayed a review of their Phase 1 trade deal initially scheduled for Saturday and have not announced a new date so far. President Trump issued an executive order on Friday forcing ByteDance, the Chinese company behind TikTok, to sell-off or spin-off its US social media business in 90 days. Wait a sec, we’re not thorough yet! Technical levels EUR/USD OVERVIEW Today last price 1.186 Today Daily Change 0.0018 Today Daily Change % 0.15 Today daily open 1.1842 TRENDS Daily SMA20 1.1735 Daily SMA50 1.1468 Daily SMA100 1.1199 Daily SMA200 1.1124 Cheers!