EUR/USD Price Analysis: Muted reaction to Biden’s stimulus talk, Friday’s close pivotal

• Biden’s stimulus announcement fails to move the needle in currency markets. 
• EUR/USD trades in a sideways manner near 1.2155. 
• Thursday’s indecisive Doji candle has neutralized immediate bearish bias.

The US President-elect Joe Biden unveiled a much-anticipated coronavirus rescue plan a few minutes before press time, promising $2,000 in stimulus cheques to Americans, social equity, infrastructure spending, and a potential minimum wage of $15 per hour. 

However, Biden did not give away the total size of the stimulus program, which, according to media reports released early Friday, is $1.9 trillion. 

So far, Biden’s stimulus talk has failed to inject volatility in the forex markets, leaving EUR/USD sidelined near 1.2155. 

On Thursday, the currency pair traded back and forth and ended on a flat note, forming a Doji candle on the daily chart. A sign of indecision, the Doji has neutralized the short-term bearish bias put forward by the last week’s rising wedge breakdown and made Friday’s close pivotal. 

A close under 1.2111 (the Doji candle’s low) would revive the bearish view and open the doors for a sell-off 1.2050-1.20.

Alternatively, a close above the Doji candle’s high of 1.2179 would confirm a bullish reversal. 

Daily chart

Trend: Neutral

Technical levels