The EUR/USD is wavering ahead of the final reading of US Q3 GDP data that will come out at 13:30 GMT. It is also reacting to the new stimulus package passed by the US congress. The EURUSD is trading at 1.2220, which is slightly below this year’s high of 1.2250.
What happened: US congress voted for a new $900 billion stimulus package that will help support the American recovery. The funds will go towards direct payments to individuals, small companies, and states and local governments. Still, analysts and economists believe that the funds are less than what the economy needs.
The EUR/USD is also reacting to the new variant of coronavirus that is spreading in the UK and other countries. The strain has pushed more countries to announce a ban on travelling to the UK, which risks affecting the overall growth.
US GDP data ahead: The EUR/USD will later today react to the latest GDP data from the United States. Economists expect the data to show that the economy rose by 33% in the third quarter. This growth will mostly be because of the overall increase in consumer spending and fixed asset investments.
Therefore, since these numbers will be in line with the past two readings, traders don’t expect a lot of movements on the EURUSD price.
EURUSD technical outlook
What next for EUR/USD? The hourly chart shows that the EUR/USD pair bounced back after falling to 1.2128 yesterday. It is at the same level as the 25-hour and 50-hour exponential moving averages. For today, we suspect that the pair will continue falling as bears aim for the next support at 1.2200.