EUR/USD challenges resistance zone as President Trump signs stimulus

EUR/USD trades at 1.2215 versus 1.2179 in early Asia.
President Trump signs the coronavirus package, sending the dollar lower.
The EUR bulls need to establish a foothold above 1.22.

Omkar Godbole FXStreet Contributor

EUR/USD is better bid and challenging critical resistance zone on Monday, with the safe-haven dollar nursing across-the-board losses on President Trump's decision to sign the much-needed coronavirus relief package.

The currency pair is currently trading near 1.2215, representing a nearly 0.30% gain on the day. The upside was capped in the zone of 1.2215-1.2221 in the previous two trading days.

Trump signed a $2.3 trillion package late Sunday, combining Covid-19 relief with government funding, restoring enhanced unemployment assistance that expired Sunday, and authorizing $600 in direct payments to Americans.

Trump had opposed the package last week, demanding larger relief checks and scaled-back spending. His sudden change of heart seems to have caught markets off guard and looks to be drawing offers for the greenback. The Brexit deal reached last week has also cleared the way for a continued rally in EUR/USD.

It remains to be seen if the pair can establish a foothold above 1.22, having failed to do so in the previous two trading days. The data calendar is light on Monday, and erratic moves could be seen due to holiday-thinned trading.

Technical levels

EUR/USD

Overview
Today last price	1.2215
Today Daily Change	0.0027
Today Daily Change %	0.29
Today daily open	1.2186

Trends
Daily SMA20	1.2144
Daily SMA50	1.1947
Daily SMA100	1.187
Daily SMA200	1.1513

Levels
Previous Daily High	1.2186
Previous Daily Low	1.2183
Previous Weekly High	1.2257
Previous Weekly Low	1.213
Previous Monthly High	1.2003
Previous Monthly Low	1.1603
Daily Fibonacci 38.2%	1.2185
Daily Fibonacci 61.8%	1.2184
Daily Pivot Point S1	1.2184
Daily Pivot Point S2	1.2182
Daily Pivot Point S3	1.218
Daily Pivot Point R1	1.2187
Daily Pivot Point R2	1.2188
Daily Pivot Point R3	1.219

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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