The US on Tuesday added 1302 death from COVID 19 in 24 hrs. The world’s largest economy added 53847 new cases of the virus. The US has now recorded 4,765,170 total cases with 156,668 deaths making it far the worst-hit country in the world.

The US Congress seems unable to find common ground on the next aid package, a headline that affected the market’s mood. Both sides Democrats and Republicans said they agreed to a series of concessions but also acknowledged they still had a number of differences that they were attempting to work through, though neither would lay out specific policy items.

“They made some concessions, which we appreciated. We made some concessions, which they appreciated. We’re still far away on a lot of the important issues,” Schumer told reporters after the meeting. “The fundamental disagreement is the scope and depth of the problem and its solution.”

At the same time speculation that stalemate over fiscal policy in Washington could leave the Federal Reserve with more to do, has hastened a steady decline in U.S. yields – undermining the dollar more broadly.

“U.S. economic outperformance, relative to the euro zone and Japan, is no longer guaranteed given the damage from the COVID-19 pandemic,” said Tai Hui, J.P. Morgan Asset Management’s chief strategist in Asia.

“Dollar interest rates are also converging to other developed economies’ interest rates, which means that the dollar is less appealing,” he said, adding it is difficult to see the Fed easing policy ahead of its global peers.

EUR/USD 4 Hour Chart:

Support: 1.1744 (S1), 1.1690 (S2), 1.1659 (S3).

Resistance: 1.1828 (R1), 1.1859 (R2), 1.1913 (R3).

Amid all the negative sentiments for the Dollar, we expect a bullish trend for EUR/USD.