EUR/USD On the Defensive as Biden Considers $2 Trillion Stimulus Package

USD/JPY

USD/JPY is looking to extend the gains above 104.00, having hit a daily high of 104.20 earlier in the Asian session. The US President-elect Joe Biden is expected to announce additional fiscal stimulus on Thursday. That could revive the rally in both the yields and USD/JPY. USD/JPY could find support at 103.90 and a fall through may take it further to the support level of 103.76. On the other side, resistance could stand at 104.19 and a rise through may take it to the next resistance level of 104.37.
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EURUSD

EUR/USD is trading near 1.2150, as the US dollar and Treasury yields are cheering reports that President-elect Joe Biden is considering a bigger-than-expected stimulus package of about $2 trillion. The ECB minutes and US weekly jobs data could influence the spot ahead of Powell’s speech. EUR/USD could find support at 1.2129 and a fall through may take it further to the support level of 1.2102. On the other side, resistance could stand at 1.2168, and a rise through may take it to the next resistance level of 1.2190.
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GBPUSD

GBP/USD bounces back towards 1.3650 in the early European session. Despite the quick pullback, the bulls remain cautious amid the US dollar’s rebound while the focus shifts towards the critical US weekly jobless claims data and a speech by the Fed Chair Powell. GBP/USD could find support at 1.3630 and a fall through may take it further to the support level of 1.3610. On the other side, resistance could stand at 1.3667, and a rise through may take it to the next resistance level of 1.3685.
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GOLD

Gold attempts a move towards $1,840, having eroded nearly $10 in a quick move that saw the prices tumble to below $1,830 region. CNN reported that President-elect Biden is considering a bigger stimulus plan of around $2 trillion, which lifted the Treasury yields along with the dollar. Gold could find support at 1,824.20 and a fall through may take it further to the support level of 1,816.90. On the other side, resistance could stand at 1,848.40, and a rise through may take it to the next resistance level of 1,859.10.
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