EUR/USD strengthens against the greenback in today’s trading session after testing support at 1.07464 on Tuesday, March 24, 2020. Impressively, the pair rose around the weekly major resistance at $1.08874, yesterday but was unable to sustain.
Analyzing the above EUR/USD movement over the past 24 hours, we see that the fiscal stimulus package is likely to weigh over the dollar. Fed’s open-ended QE is waiting for its approval as the situations worsen. The American’s greenback is under pressure as the Asian stocks gains moderate momentum in the day’s trading session, today.
EUR/USD is keeping its ground above 1.08, at the press time. However, a dip is feared below 1.08 as the forward-looking German IFO Expectations Index for March prints well below the expected figure of 82, ramping the ongoing recession that has been instigated due to the pandemic outbreak. Moreover, the Wall Street is also accelerating as the government injects liquidity amidst the global crisis due to Coronavirus.
However, EUR/USD is below Monday’s trading high which was marked at 1.088 and has retained strong support at 1.080, below which there will be a bearish breakdown around previous monthly low and below 38.20% Fib Retracement Level.
