EURUSD jumped over 80 pips after the Fed announced new aggressive measures and will buy unlimited amounts of Treasurys and mortgage securities. The Fed will buy $250 billion in MBS this week and also will buy $375 billion in Treasuries. Above that will relaunch TALF to support the consumer and business debt and will set two facilities to support the corporate debt markets.
On the other side of the Atlantic, the German government signed a €750 billion economic package to combat coronavirus spread impact. On the other hand, Bundesbank said that the recession in Germany is inevitable, but the public finances are robust enough to tackle the coronavirus outbreak crisis.
On the economic data front, the Chicago Fed National Activity Index climbed to 0.16 from previous -0.25 in February.
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EURUSD Support and Resistance
EURUSD is 0.155 higher at 1.0755 as the pair managed to rebound from three-month lows as the risk appetite return to the market after the new emergency measures from the Fed and the fiscal stimulus from the German government. The technical outlook is still bearish despite today’s rebound, and lower levels can’t be ruled out.
On the upside, first resistance for EURUSD stands at 1.0801 the daily high. A break above will meet the next resistance at 1.0830 the high from Friday’s trading session. The next hurdle for the pair is at 1.0981 the March 19th highs.
On the other side, first support for the pair stands at 1.07 round figure. Next support would be met at 1.06354 the daily low. More bids might emerge at 1.06 psychological mark.
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