The dollar was down on Monday morning in Asia, with the ever-increasing number of COVID-19 cases counterbalancing hopes that a working vaccine will become available soon and kickstart the economic recovery from the virus. In Asia, fifteen countries signed the Regional Comprehensive Economic Partnership trade deal on Sunday. The agreement whet investors’ risk appetite over hopes for an improvement in trade hit by U.S.-China tension.

The EURUSD market continues to extend a bottoming turn and should foster rallies to push against a previous congestion high at 1.1877. Posting a close over 1.1877  signals for a larger emerging bull drive to 1.1950. We may again see minor corrective dips into last week’s upswing, but narrow congestion days holding 1.1811 will bull flag. Only a close under 1.1740 (SAR)  rekindles bear trend forces.

R2          1.1877
R1          1.1855

S1          1.1811
S2          1.1790