EUR/USD: US stimulus progress and ECB bond data to exacerbate losses

EUR/USD has been extending its falls below 1.19. US stimulus and ECB action are likely to sink the pair further, Yohay Elam, an Analyst at FXStreet, reports.  

Key quotes

“The Senate approved a modified version of President Joe Biden's coronavirus relief package. While the White House ceded some ground to moderate Democrats, the legislation's scope remains around $1.9 trillion, a substantial stimulus to the economy. The bill returns to the House, which is set to approve it on Tuesday.” 

“Later in the day, the European Central Bank releases its weekly bond-buying figures. A big boost to buying now would weigh on the common currency – and perhaps hint at a change of policy in the bank's decision due on Thursday.” 

“Support awaits at 1.1850, which provided support in November, followed by 1.1820 and 1.1750, the latter being a cushion in October.” 

“Some resistance is at 1.1895, Friday's low, followed by 1.1920 and 1.1950.”