The EUR/USD succeeded to extended its early-day bullish rally and hit the fresh intra-day highs above the mid-1.1800 level. However, the reason for the gains in currency pair could also be attributed to the broad-based U.S. dollar bearish bias, triggered by the on-going uncertainty surrounding the much-awaited U.S. fiscal stimulus and the second wave of coronavirus (COVID-19).
On the other hand, the reports that the country’s Finance Minister Olaf Scholtz outlined a EUR10 bn job subsidy extension plan, eventually underpinned the shared currency and contributed to the currency pair gains. In the meantime, the rising number of coronavirus in Europe became the key factor that kept the lid on any additional gains in the currency pair. At the moment, the EUR/USD currency pair is currently trading at 1.1850 and consolidating in the range between 1.1832 and 1.1868.
During speaking on a German TV late on Weakened, the country’s Finance Minister Olaf Scholtz sketched a job subsidy extension plan worth 10 billion Euros. The plan will extend up to 2 years and will allow firms to keep their employees and avoid layoffs. It will cover about 60% or more of salary. This supported the shared currency Euro and added in the upward trend of EUR/USD pair.
On the other hand, the online meeting between the world’s top two nations I,e the U.S. & China has been postponed without giving any future dates, that was initially scheduled for Saturday. However, this report played a negative role in the market trading sentiment and capped further gains in the equity market. The negative impact on the equity market decreased the risk sentiment and limited the early daily gains of currency pair EUR/USD.
At the USD front, the broad-based U.S. dollar reported losses on the day as the United States still faces uncertainty over the much-awaited coronavirus (COVID-19) relief package, which eventually destroyed hopes for a quick U.S. economic recovery.
The EUR/USD pair continues to trade bullish amid major resistance breakout of 1.1866 level. Continuation of an upward movement may drive more buying until 1.1909 level as the 50 EMA, RSI and MACD are supporting bullish bias. Checkout a trading signal below…
Entry Price – Buy 1.1871
Stop Loss – 1.1831
Take Profit – 1.1911
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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