EURUSD RISES OVER VACCINE DEVELOPMENTS

In the statement made by Pfizer, it was stated that the Covid-19 vaccine, which the company developed jointly with Biotech, was 95 percent effective and had no significant side effects, and the increased risk appetite in the markets brought along pricing above 1.1850 in the EURUSD parity. New York Fed President John Williams warned that the rapid increase in Covid-19 cases could damage the economy. Following these developments, despite the positive news of vaccination, it was decided to close schools again in New York within the scope of the measures. On the US side, the Philadelphia Fed manufacturing index exceeded expectations, while weekly jobless claims rose compared to the previous week. Thus, it is seen that the parity has accelerated the upward trend with the weak image protected on dollar assets.

If we look at the developments in the Euro Area, the October consumer price index increased by 0.2 percent monthly, while this data decreased by 0.3 percent annually. Core CPI rose 0.2 percent annually in October. Hungarian Prime Minister Viktor Orban announced that they vetoed the European Union budget and rescue program on the grounds that countries that do not want to accept immigrants could be blackmailed. ECB President Lagarde called on Euro Zone countries to end the dispute over the European Union budget and not to leave the urgently needed Covid-19 assistance to the last minute.

After all these developments, the parity, which is in the rally towards 1.19 level, can gain momentum with 1.1950 and 1.20 resistance levels. Especially with the 1.19 resistance overcoming, the uptrend, which has been under pressure in the pair for some time, may gain strength. On the contrary scenario, in an image below where 1.1852 support may occur, the decreases can be expected to turn downwards with support levels of 1.18 - 1.1750.