fxstreet.com 08 Feb, 2021 08:45 am

Stimulus hopes set to send euro down from critical resistance

Stimulus hopes set to send euro down from critical resistance
The currency pair is at crossroads – EUR/USD has reached the critical 1.2050 level after benefiting from dollar weakness, but there are good reasons f

The currency pair is at crossroads – EUR/USD has reached the critical 1.While momentum on the four-hour chart has turned to the upside, the currency pair is trading below the 50, 100, and 200 Simple Moving Averages.US President Joe Biden and Treasury Secretary Janet Yellen have taken advantage of the weak employment data to make their case for a large stimulus plan.So far, Dems have advanced a blueprint for large stimulus but have yet to fill the details as negotiations continue and as Congress prepares for former President Donald Trump's trial.

However, the narrative has changed over the weekend.20, which is a psychologically significant level and was a cushion in early February.

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