May 19, 2020
EUR/USD Surges To New Highs
But yesterday the pair bounced from a major support level 1.0800 while the U.S dollar is getting weaker. There are 3 reasons for the positive turnaround in the euro. Some European countries are pushing to establish a recovery fund for EU members. Germany and France already agreed on a reconstruction plan worth €500 billion.
That means more stimulus measures for EU countries. The market reacted to the positive result from a new vaccine in a human trial. The first vaccine that was tested in humans appears to be safe and able to generate an immune-system response to coronavirus.
This news pushed the safe-haven dollar to the downside and other assets such as stocks and currencies to the upside so the EURUSD is benefiting from a weaker dollar. The EU countries have widely started reopening their economies recently. All this together might push the EURUSD towards 1.1000 major resistance and possibly higher.
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