EUR/USD testing 1.2100 amid USD pullback, ahead of ZEW, Yellen

EUR/USD attempts recovery as the USD bulls turn cautious.
Stimulus hopes-driven risk-on mood weighs on the greenback.
Next of note remains the German ZEW, Yellen’s hearings.

Dhwani Mehta FXStreet

EUR/USD trades close to 1.2100, holding onto the recovery mode ahead of the European open. The recovery in the risk sentiment amid expectations of additional fiscal stimulus is weighing on the safe-haven US dollar.

US President-elect Joe Biden is set to take Office on January 20, pushing for the $1.9 trillion stimulus package already outlined last week.

Meanwhile, the Treasury Secretary nominee Janet Yellen is likely to urge the government to "act big" with its next coronavirus relief package when she testifies before the Senate later on Tuesday.

Additionally, Eurozone finance ministers renewed push for fiscal support for their economies, in order to boost the post-pandemic recovery plans, also renders supportive for the riskier assets.

Looking ahead, the major will remain at the mercy of the US dollar dynamics and risk trends ahead of Yellen’s testimony. In the meantime, the German ZEW survey could keep the EUR traders somewhat busy.

EUR/USD technical levels

“Any further upside past-1.2100 needs to cross the falling wedge’s resistance line, at 1.2116 now, to recall the EUR/USD buyers eyeing to refresh the multi-month high above 1.2349. On the contrary, the quote’s U-turn from present levels will have strong support around 1.2045/40 area including the pattern’s lower line and December 02 trough,” FXStreet’s Analyst Anil Panchal notes.

EUR/USD additional levels

EUR/USD

Overview
Today last price	1.2096
Today Daily Change	0.0019
Today Daily Change %	0.16
Today daily open	1.2077

Trends
Daily SMA20	1.2205
Daily SMA50	1.2087
Daily SMA100	1.1931
Daily SMA200	1.1617

Levels
Previous Daily High	1.2087
Previous Daily Low	1.2054
Previous Weekly High	1.2227
Previous Weekly Low	1.2077
Previous Monthly High	1.231
Previous Monthly Low	1.1924
Daily Fibonacci 38.2%	1.2066
Daily Fibonacci 61.8%	1.2074
Daily Pivot Point S1	1.2058
Daily Pivot Point S2	1.2039
Daily Pivot Point S3	1.2024
Daily Pivot Point R1	1.2091
Daily Pivot Point R2	1.2106
Daily Pivot Point R3	1.2125

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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