EURUSD at major resistance


The greenback continues to decline broadly, and it looks like investors are finally starting to price in the vast money printing by the Fed. On Monday, the EURUSD pair was up half a percent, trading at around 1.1140.

This level coincides with the latest swing high, which was posted in late March, during the coronavirus panic. If the 1.1150 resistance is broken, large stop-losses of short positions could be hit, which might push the euro toward 1.12 very quickly. 

The next target for bulls will then be at March highs near the psychological 1.15 level. 

Alternatively, the short-term support seems to be at 1.11, and the EURUSD pair needs to stay above this level to attack the mentioned resistance. If this level fails to hold, the short-term outlook could change back to bearish, targeting the 200-day moving average at 1.1020.

From the long-term perspective, the Fed is printing much more money than the ECB. The M2 indicator in the US is soaring vertically, which should, at least theoretically, lead to further US Dollar weakness.

Equities are rising globally, which implies sentiment is positive, and in this environment, the greenback might be sold. 
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