EUR/USD leaps to fresh highs with a bullish hourly close
FXStreet News

EUR/USD leaps to fresh highs with a bullish hourly close

EUR/USD is benefitting from a weaker US dollar on stimulus hopes. 

The single currency has rallied from a low of 1.1923 to a high of 1.2076 and is currently trading 1.22% higher on the day. 

This is a dollar-based moved as highlighted in the following charts:

From the prior day’s analysis, it was noted that the dollar could be on the verge of a fresh wave of selling below critical resistance as follows:

As it stands, the index is now well on its way for a break of the 91 level in a new bearish trend. The greenback has dropped to its lowest level in more than 2-1/2 years:

Investors’ appetite for risk increased on prospects of further fiscal stimulus from the United States as mentioned here:

McConnell: Will revise his targeted relief bill for a floor vote

The news of a proposed COVID bill sank the dollar while the resumption of fresh discussions between US Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi on Tuesday about a stimulus package keeps the risk-on flows flowing.

There has been a proposed relief bill of $908 billion that would fund measures through March 31, including $228 billion in additional paycheck protection funds for hotels, restaurants and other small businesses, Reuters reported.  



FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.