EUR/USD: Allowing the usage of J&J vaccines to extend euro's surge

EUR/USD has surged above 1.20. Now, the pair needs a shot in the arm from J&J after riding on dollar weakness, Yohay Elam, an Analyst at FXStreet, reports.

EUR/USD may receive more reasons to rise

“President Joe Biden met a Congressional delegation on Monday and additional developments are likely on Tuesday. If Democrats manage to pass a corporate tax hike, it would mean less debt issuance down the road and less pressure on bonds. In turn, lower yields would weigh on the dollar.”

“The next EUR/USD moves likely depends on developments in the old continent. The European Medicines Agency (EMA) is set to publish its verdict on Johnson & Johnson's single-dose vaccine on Tuesday. After last week's suspension, there is a good chance that the regulator allows its usage, boosting Europe's vaccination campaign.”

“Another boost to the common currency may come from Germany, where the ruling CDU/CSU bloc is about to decide on who will be the party's chancellor candidate. According to reports from Berlin, the CDU's moderate leader Armin Laschet will likely remain at the helm, providing some relief to markets.” 

“The daily high of 1.2075 is the immediate resistance line. It is followed by 1.2110, which was a swing high in early March.”

“Support awaits at 1.2025, a stepping stone on the way up, followed by the round 1.20 level.”