EUR/USD Price Analysis: Bears attack 1.2200 as US fiscal stimulus is finally out

EUR/USD hold lower ground amid stimulus hopes, risk-off mood.
US policymakers up for conveying aid package details, stop-gap funding.
Downside break of 50-HMA favor sellers to eye two-week-old support line.

Anil Panchal FXStreet

EUR/USD refreshes intraday low to 1.2205, down 0.33% intraday, during Monday’s Asian session. In doing so, the quote extends losses after breaking 50-HMA support. Also favoring the bears are fundamentals suggesting a stronger US dollar.

US House Speaker Nancy Pelosi conveyed official agreement over the much-awaited coronavirus (COVID-19) stimulus while favoring the risks and the US dollar off-late.

Read: US House Speaker Pelosi: Congressional Democrats have reached an agreement...

As a result, EUR/USD prices are declining towards an upward sloping trend line from December 09, at 1.2179 now. Though, the 1.2200 round-figure may offer immediate support.

If at all the bears keep the reins below the stated support line, the 1.2100 threshold and the monthly low near 1.2040 will be on their radars.

Alternatively, 1.2230 can offer immediate resistance ahead of the 50-HMA level around 1.2240.

Even if the corrective recovery crosses 1.2240, if any, the monthly peak surrounding 1.2272 and the 1.2300 round-figure will add barriers to the quote’s upside.

EUR/USD hourly chart

Trend: Further downside likely

Additional important levels

Overview
Today last price	1.221
Today Daily Change	-36 pips
Today Daily Change %	-0.29%
Today daily open	1.2246

Trends
Daily SMA20	1.2073
Daily SMA50	1.1902
Daily SMA100	1.1852
Daily SMA200	1.148

Levels
Previous Daily High	1.2272
Previous Daily Low	1.2226
Previous Weekly High	1.2273
Previous Weekly Low	1.2116
Previous Monthly High	1.2003
Previous Monthly Low	1.1603
Daily Fibonacci 38.2%	1.2243
Daily Fibonacci 61.8%	1.2255
Daily Pivot Point S1	1.2224
Daily Pivot Point S2	1.2201
Daily Pivot Point S3	1.2177
Daily Pivot Point R1	1.2271
Daily Pivot Point R2	1.2295
Daily Pivot Point R3	1.2318

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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