- EUR/USD ended a four-day losing run on Monday and traded just below 1.12 during the Asian trading hours.
- Fed's easing likely drew bids for EUR/USD on Monday.
- Talks of aggressive fiscal stimulus may bode well for equities and draw offers for the single currency.
EUR/USD jumped 0.69% on Monday, marking an end of a four-day losing run which saw the spot fall from 1.1458 to 1.1055.
The Federal Reserve (Fed) delivered an emergence rate cut of 100 basis points and announced a quantitative easing in the form of at least $700 billion of asset purchases.
The central bank's aggressive stimulus overshadowed the turmoil in the Eurozone caused by the coronavirus outbreak drew offers for the greenback.
While EUR/USD defended key Fibonacci support at 1.1061 for the third straight day on Monday, the buyers failed to establish a strong foothold above 1.12.
A convincing break above that psychological resistance could remain elusive on Tuesday, as the S&P 500 futures are currently pointing to risk reset with 3.3% gains. If the equities in Europe and the US pick up a bid, the haven demand for the single currency will likely weaken.
The dollar may also draw bids fiscal stimulus talks. "The coronavirus relief package awaiting a Senate vote should not be delayed, and we must pass it immediately," Senator Elizabeth Warren from Massachusetts noted in her opinion piece for CNN.
Meanwhile, Treasury Secretary Steven Mnuchin said on Monday after a meeting with Senate Republicans that he was seeking a "big number" for an additional stimulus package intended to prop up the economy amid the coronavirus outbreak.
On the data front, the focus will be on the German Zew Survey for March scheduled for release at 10:00 GMT. During the American session, the spotlight will be on the US Retail Sales due at 12:30 GMT.
|Today last price||1.1184|
|Today Daily Change||0.0002|
|Today Daily Change %||0.02|
|Today daily open||1.1182|
|Previous Daily High||1.1237|
|Previous Daily Low||1.1072|
|Previous Weekly High||1.1497|
|Previous Weekly Low||1.1055|
|Previous Monthly High||1.1089|
|Previous Monthly Low||1.0778|
|Daily Fibonacci 38.2%||1.1174|
|Daily Fibonacci 61.8%||1.1135|
|Daily Pivot Point S1||1.1091|
|Daily Pivot Point S2||1.0999|
|Daily Pivot Point S3||1.0926|
|Daily Pivot Point R1||1.1255|
|Daily Pivot Point R2||1.1329|
|Daily Pivot Point R3||1.142|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.