Video EUR / USD 24.12.20.
The US dollar falls against the euro
EUR / USD is currently trying to move above 1.2200 as the US dollar loses ground against a large basket of currencies.
The US dollar index remains under pressure and attempts to move below the nearest support level that has emerged at 90.15. It remains to be seen whether the US dollar index will manage to gain enough momentum in lite holiday trading, although additional Brexit news may serve as a significant catalyst.
There are no major economic reports expected to be released in the US and the EU today, so Brexit and the US stimulus will be the main topics for FX traders. Recent reports suggested that the EU and UK were very close to a compromise deal that could be announced today.
In the United States, President Donald Trump has vetoed a defense policy bill and reiterated his demands to increase the amount of stimulus checks from $ 600 to $ 2,000 per person. Interestingly, recent developments on the stimulus front have not provided any material support for the US dollar, with traders favoring riskier currencies.
EUR / USD is continuing its attempts to break above the nearest resistance level at 1.2220. Currently, EUR / USD is attempting to settle above 1.2200. If this attempt is successful, the EUR / USD will pass another test of resistance at 1.2220.
RSI is in moderate territory, so there is plenty of room to gain ground in case the right catalysts emerge. If the EUR / USD manages to settle above the resistance at 1.2220, it will head to the next resistance level at 1.2250. A successful test of this level will push EUR / USD towards resistance near the December highs at 1.2280.
On the support side, the closest support level for EUR / USD is still at 1.2175. If the EUR / USD drops below this level, it will head towards support at 1.2155. The next support level is located at 20 EMA at 1.2145 so EUR / USD will likely get strong support in the 1.2145 – 1.2155 area. A move below this support area will pave the way for testing the next level of support at 1.2110.
For an overview of all of today’s economic events, check out our economic calendar.