the EUR / USD is down more than 0.60% in response to the new strain of covid virus in the UK and the new stimulus deal in the US. The stronger dollar also helped.
What happened: After months of negotiations, leaders in Congress and the White House have reached a deal that will provide about $ 900 billion in additional stimulus. The funds will provide a stimulus check of $ 600 to individuals. It will also provide a $ 300 increase in weekly unemployment benefits. Other funds will go to local governments, vaccine distribution and small businesses.
What else: The EUR / USD price is also dropping due to the new strain of Covid spreading in Europe. The virus, which is spreading faster than the normal strain, has prompted more countries like Germany and France to cut back on travel to and from the UK.
In addition, the lack of progress on Brexit is another element that is moving EURUSD. Finally, the dollar index, which jumped 0.45%, also contributed.
EUR / USD forecast: The EUR / USD price fell sharply today. On the hourly chart, we see that the pair has fallen sharply from the double top level of 1.2272 to the current level of 1.2182. The 14 and 28 period moving averages also made a bearish cross.
Therefore, the pair will likely continue to move lower as bears seek the next key support at 1.2150. The invalidation point for this price action will be 1.2200.
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EUR / USD technical table