- EUR / USD is trading at 1.2215 from 1.2179 in early Asia.
- President Trump signs the coronavirus package, sending the smaller dollar.
- EUR bulls must establish a support point above 1.22.
EUR / USD is a better offer and a challenging critical resistance area on Monday, with general healthcare losses in the dollar from President Trump’s decision to sign the much-needed coronavirus aid package.
The currency pair is currently trading near 1.2215, representing a gain of almost 0.30% on that day. The increase was limited in the area 1.2215-1.2221 in the last two trading days.
Trump signed a $ 2.3 trillion package late Sunday, combining government-funded Covid-19 aid, restoring increased unemployment assistance that expired on Sunday, and authorizing $ 600 in direct payments to Americans.
Trump opposed the package last week, calling for greater aid controls and reduced spending. His sudden change of heart seems to have surprised the markets on guard and seems to attract offers for the green dollar. The Brexit agreement reached last week also paved the way for a continuous rally in EUR / USD.
It remains to be seen if the pair can establish a support point above 1.22, after failing to do so in the last two trading days. The data calendar is easy on Mondays, and irregular movements could be seen due to thin holiday transactions.