- EUR/USD climbs to 1.2215, up from 1.2179 in Asia open.
- Trump unexpectedly signs the aid-package.
- Dollar witnesses broad selling.
- Key resistance eyed in the pair
EUR/USD trades around 1.2215, gaining 0.30 Percent today, knocking on the resistance area that capped the last two-day action. The broad selling in the US dollar after President Trump signed the fiscal stimulus package to revive the pandemic-stricken economy strengthens the EUR bulls.
The 2.3 trillion US dollars package, combined with government funding and coronavirus relief, raised unemployment assistance from the earlier one that expired on Sunday and encompassed 600 dollars direct payment to all the US citizens.
Trump, who had earlier demanded altering the bill to include larger relief-checks and spending cuts, unexpectedly signed the original bipartisan proposal from the US Congress. The move took markets by surprise.
Successful Brexit-deal talks also helped the rally in the EUR/USD to scale new highs.
Now, traders are eyeing the 1.22 level to see if the pair can sustain a move above it after EUR/USD failed to achieve that in the last two trading days.
The light economic-docket and low volume trading due to the holidays might cause erratic action in the pair in the day ahead.
At the time of writing, one Euro buys 1.2231 US dollars, up 0.43% as of 08:00 AM UTC.