EUR/USD hits two-week highs above 1.0900 on Franco-German proposal for a recovery fund

Euro gains momentum after Merkel and Macron back EU fund for recovery.
EUR/USD hovering around 1.0900, up almost a hundred pips.

Matías Salord FXStreet

The EUR/USD extended gains boosted by a decline of the US dollar across the board on risk-on. Also the announcement that France and Germany proposed for the European Union to raise debt jointly added more strength to the euro.

The pair reached at 1.0913 the highest level since May 5 and it is hovering near the peak, holding a strong bullish tone. EUR/GBP eared losses while EUR/CHF jumped above 1.0550, to the highest in two weeks.

The US dollar is under pressure hit by risk appetite. The DXY is falling 0.65% and bottomed at 99.70. In Wall Street, the Dow Jones gains 3.45% and the Nasdaq 2.38%. Hopes about a vaccine for coronavirus triggered optimism.

More recently, equity prices rose even further after German Chancellor Merkel and French President Macron announced a recovery fund of around 500 billion euros for the recovery of the coronavirus crisis. Macron said it will be grants and not loans.

Technical levels

EUR/USD

Overview
Today last price	1.088
Today Daily Change	0.0059
Today Daily Change %	0.55
Today daily open	1.0821

Trends
Daily SMA20	1.0846
Daily SMA50	1.0918
Daily SMA100	1.0978
Daily SMA200	1.102

Levels
Previous Daily High	1.0851
Previous Daily Low	1.0789
Previous Weekly High	1.0897
Previous Weekly Low	1.0775
Previous Monthly High	1.1039
Previous Monthly Low	1.0727
Daily Fibonacci 38.2%	1.0827
Daily Fibonacci 61.8%	1.0813
Daily Pivot Point S1	1.0789
Daily Pivot Point S2	1.0758
Daily Pivot Point S3	1.0727
Daily Pivot Point R1	1.0852
Daily Pivot Point R2	1.0882
Daily Pivot Point R3	1.0914

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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