The euro to USD (EURUSD) pair is rising today as traders reflect on the on the ongoing stimulus debate in the United States. The pair is trading at 1.1776, which is its highest level this week. It is also higher than this week’s low of 1.1732.
The US dollar has been relatively weak this week as investors focus closely on the state of the American economy. In a statement yesterday, Speaker Nancy Pelosi said that she will not accept smaller stimulus bills as the administration has suggested. Instead, she has insisted that any spending package will need to be part of a bigger package that also includes funds for states and local governments.
Meanwhile, data from the United States has showed that the economy’s growth has started to flatten. Just yesterday, data released by the Bureau of Labour Statistics (BLS) showed that more than 840k people filed for initial jobless claims. While that number was the smallest in weeks, it is significantly above the before Covid average.
With no major economic data from the US and Europe today, the focus will remain on US stimulus talks. Signs of progress in these talks will put more pressure on the greenback, which could see the euro to dollar price continue rising.
The four-hour chart shows that the euro to USD pair has been in a strong upward trend since it formed a hammer pattern yesterday. The price is above the lower side of the ascending channel that is shown in red. It is also above the 25-day and 15-day exponential moving averages. Therefore, I suspect that the EURUSD will continue rising as bulls aim for the next resistance level at 1.1800. This trend will remain so long as the price is above the rising support.
