EURUSD Trades Higher on Profit-Taking; US Economic Relief Package Ahead

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EURUSD is trading higher in today’s Asian session after aggressively selling-off last week following the ECB’s QE program. As of this writing, the currency pair is up by over 30 pips from its opening price as it trades at 1.0733.

It’s been a quiet day so far in the FX market. Initially, traders looked forward to a statement by leaders of the G7 countries after they meet later today. However, it’s been said that they will not be announcing minutes of their emergency conference call later today.

What is still on schedule is the US Senate voting on the US coronavirus relief package. On Sunday, politicians failed to move forward with the $1.8 trillion bill. This would entail adults to receive $1,200 from the US government while children receive $500. It would also give $500 billion to businesses.

If the bill passes, we could see EURUSD trade lower as the economic package could strengthen the US dollar. Meanwhile, if negotiations stall, EURUSD could pare some of its losses.

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EURUSD Outlook

On the hourly time frame, we can see that the currency pair is testing resistance at the falling trend line (from connecting the highs of March 17, March 19, and March 20). Reversal candlesticks at this price, around 1.0730, could mean that EURUSD may soon fall to Friday’s lows at 1.0650. On the other hand, a strong break of the trend line could mean that there may be enough buyers in the market to push EURUSD to near-term resistance at 1.0825.

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