- EUR / USD traded at 1.2215 compared to 1.2179 in early Asia.
- President Trump signs the coronavirus package and sends the dollar lower.
- The EUR bulls need to establish a foothold above 1.22.
EUR / USD is a better bid and challenging critical resistance area on Monday, with the safe haven dollar giving overall losses to President Trump’s decision to sign the much-needed aid package for coronavirus.
The currency pair is currently trading close to 1.2215, which represents an almost 0.30% profit on the day. The upside has been limited to 1.2215-1.2221 over the past two trading days.
Trump signed a $ 2.3 trillion package late Sunday that combined Covid-19 relief with government funding, repaired the improved unemployment benefits that expired Sunday, and approved $ 600 in direct payments to Americans.
Trump opposed the package last week, demanding bigger relief tests and shortened spending. It looks like his sudden heart change has caught markets off guard and he seems to be pulling offers for the greenback. The Brexit agreement reached last week also paved the way for a continued contraction in EUR / USD.
It remains to be seen whether the pair can establish a foothold above 1.22 as they have not done so in the previous two trading days. The data calendar is light on Monday, and erratic movements can be seen due to the thinning out with holidays.