With the bond rout at its peak since early 2020, EURUSD drops to the lowest in five months as traders await US President Joe Biden’s infrastructure bill details. However, a sustained downside break of a three-month-old falling trend line favors the pair bears. As a result, a horizontal area established from September 25, 2020, around 1.1610-1600, gains market attention. Following that, a 50% Fibonacci retracement level of 1.1530 and June 2020 peak surrounding 1.1420 should lure the EURUSD sellers.
It should, however, be noted that Biden’s ability to please investors can trigger the much-awaited corrective pullback beyond the support-turned-resistance near 1.1740. Even so, EURUSD bulls are less likely to get convinced until the quote rallies beyond the 200-day SMA level of 1.1865. Overall, EURUSD has some room to the south but the key event may disappoint the bears and hence traders should be cautious ahead of the 20:20 GMT speech.