EUR/USD Transcends 200-week SMA Following President Trump’s Stimulus Discussion

  • EUR/USD is expanding Monday’s bullish push, following reports that President Donald Trump is exploring an additional monetary stimulus plan.

    The pair went over the 200-week simple moving average (SMA) of 1.1332, a couple of minutes before close, and is presently exchanging at highs close to 1.1345. The currencies jumped by over 0.6% on Monday, forming a bullish trend on the rear of Federal Reserve’s choice to buy corporate bonds.

     

    Trump’s Stimulus Discussion

    Bloomberg revealed on Tuesday’s Asian market hours that Trump’s governance is setting up an almost $1 trillion construction proposal as a part of its endeavors to enable the economy to recuperate from the drastic effects of COVID-19.

    The news has reinforced bullish sentiments. The futures attached to the S&P 500, are currently showing over 1.5% gain.

    Furthermore, the risk reset is putting pressure over the USD once more. Nonetheless, it has been treated as a safe haven since the start of the pandemic.

     

    Price Outlook

    Looking forward, the dollar is probably going to stay under tension, keeping the EUR/USD a better offer. The pair is currently on an uptrend tinkering around 1.133 and the key levels to watch out for are between 1.1362 and 1.1256.

    Ultimately, the offer tone around EUR/USD will probably dampen if the US, China, or any country in Europe reports a major ascent in the new coronavirus cases. Worldwide equity markets were blazing red on Monday prior Fed’s declaration on worries of the COVID-19’s second wave.

     

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