Amidst the US Dollar’s reversal on Friday, the Euro managed to finish 0.24% higher in New York at 1.0692. The Euro rebounded against the generally weaker US Dollar to an overnight high at 1.08309 before easing. This morning in early Sydney, EUR/USD finds itself back to 1.0660 with key support at 1.0635 within reach. This level would have to hold for any recovery in the shared currency.
Reuters reported over the weekend that Germany’s Finance Minister Olaf Scholz said its debt ceiling will be raised to include a supplementary budget of EUR 156 billion. This would bring the total stimulus package of Germany to EUR 750 billion. While this would defy the country’s fiscal rulebook it will go a long way to battle the coronavirus epidemic. And would be supportive of the EUR/USD pair.
As the US grapples with the latest surge of Covid-19 cases in its own backyard, EUR/USD should climb. Immediate support today lies at 1.0640 followed by 1.0580. Immediate resistance can be found at 1.0780 and then 1.0830. Expect another choppy session with a likely range of 1.0640-1.0840. Prefer to buy dips.
