- EUR / USD remains in the midst of recovery hopes and risk mood.
- US policymakers are ready to pass on the details of the aid program, the interim funding.
- The 50-HMA downside breakout prompts sellers to look into a two week support line.
EUR / USD refreshes its intraday low at 1.2205, down 0.33% intraday, in Monday’s Asian session. In doing so, the quote extends the losses after the 50-HMA support breaks. Fundamentals also suggest a stronger US dollar.
U.S. House of Commons Speaker Nancy Pelosi has passed on a formal deal on the much-anticipated coronavirus (COVID-19) stimulus while promoting risk and the late U.S. dollar.
Read: US House Speaker Pelosi: Congressional Democrats have reached a deal …
As a result, EUR / USD prices are down towards an uptrend line from December 09, at 1.2179 now. However, the round figure of 1.2200 may offer immediate support.
If the bears keep the reins below the indicated support line, the 1.2100 threshold and the monthly low near 1.2040 will be on their radar.
Alternatively, 1.2230 may offer immediate resistance ahead of the 50-HMA level around 1.2240.
Even if the corrective rally breaks through 1.2240, if any, the monthly peak around 1.2272 and the round figure of 1.2300 will add barriers to the price increase.
EUR / USD hourly chart
Trend: further declines likely