Terence Wu, FX strategist at OCBC Bank, notes that the euro is close to its weekly resistance at 1.2220 and suggests that a breakout of this level could drive the EUR / USD to 1.3333.
Read: Eight major banks await ECB meeting today
“Expect the EUR / USD to waver on both sides of the AM at 100 weeks (1.1220). A break in this level could see the pair extend to MA at 200 weeks (1.1333). The downside supports 1.1180 / 00. “
“The news that the new fiscal stimulus package for Germany is stalled should not impose too much negativity on its own, unless it is made worse by disappointment from the ECB.”