Video EUR / USD 23.12.20.
The euro rises against the US dollar
EUR / USD is trying to climb above 1.2200 as the US dollar loses ground against a large basket of currencies.
The US dollar index has managed to break below support at 90.50 and is trying to develop further bearish momentum. The next level of material support for the US dollar index is at 90. If the US dollar index moves towards this level, the EUR / USD will gain additional support.
US President Donald Trump has said the new $ 900 billion coronavirus aid package is too small and should include stimulus checks of $ 2,000 per person instead of $ 600.
It was a big surprise to forex traders who thought Trump was ready to sign the new aid bill that was crafted after months of difficult negotiations between Republicans and Democrats. Interestingly, the news hasn’t had a major impact on the markets, but things can change quickly.
In addition to the new turn in US stimulus history, traders will continue to follow the Brexit news. At this point, it looks like the EU and UK are close to a deal that will be bullish for EUR / USD.
EUR / USD attempted to move below support at 1.2155 but failed to gain ground and rebounded closer to 1.2200. If EUR / USD manages to break above 1.2200, it will head towards the nearest resistance level at 1.2220.
A successful test of this level will push EUR / USD towards the next resistance at 1.2250. In the event that EUR / USD breaks the resistance at 1.2250, it will gain additional upside momentum and move towards the next resistance near the recent highs at 1.2280.
On the support side, the closest support level for EUR / USD is at 1.2175. A move below this level will push EUR / USD towards support at 1.2155. This level of support has been tested several times over the last few trading sessions and has proven its strength. If the EUR / USD drops below 1.2155, it will head to the next support level which is at 20 EMA at 1.2140.
For an overview of all of today’s economic events, check out our economic calendar.