- EUR / USD remain lower in the hopes of stimulus and in a risky mood.
- US policymakers to convey details about aid packages, emergency funding.
- Downside of 50-HMA favors salespeople in the eye of the two-week-old support line.
EUR / USD refreshes intraday low to 1.2205, down 0.33% intraday, during Monday’s Asian session. By doing this, the quote increases losses after breaking 50-HMA support. Also in favor of the bears are the fundamental factors pointing to a stronger US dollar.
Speaker of the US house Nancy Pelosi officially agreed on the long-awaited stimulus for the coronavirus (COVID-19), while favoring the risks and the US dollar lately.
Read: US House Speaker Pelosi: Congressional Democrats have reached an agreement …
As a result, EUR / USD prices are falling towards an upward trend line from December 9, now at 1.2179. However, the round figure of 1.2200 can provide immediate support.
If the bears hold the reins below the indicated support line at all, the 1.2100 threshold and the monthly low at 1.2040 will be on their radars.
Alternatively, 1.2230 can provide immediate resistance before the 50-HMA level around 1.2240.
Even if the corrective recovery exceeds 1.2240, if any, the monthly peak around 1.2272 and the round figure 1.2300 will hinder the upward movement of the quote.
EUR / USD hourly chart
Trend: probably further down