EUR/USD: The near-term picture is bearish with support seen at 1.1970

EUR/USD trades in the 1.2040 price zone after posting a fresh two-week low of 1.2028 as pressure mounts on US stimulus hopes. The pair is bearish and sees next support at the 1.1970 level, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“Mounting hopes about a US $1.9 trillion stimulus package provide additional support to the greenback after the House passed President Joe Biden’s bill on Saturday.”

“The EUR/USD pair is trading below the 38.2% retracement of its November/January rally at 1.2060, the immediate resistance level.”

“The risk remains skewed to the downside, with the next Fibonacci support at 1.1970.”