July 21 (Reuters) - EUR/USD hit its highest level since early March on Tuesday after the European Union agreed a massive stimulus plan to revive their coronavirus-hit economies . EUR/USD had already crossed the Rubicon after it registered a close above a major Fibonacci level at the end of last week.
The agreement paves the way for the European Commission, the EU's executive, to raise billions of euros on capital markets on behalf of all 27 states, an unprecedented act of solidarity in almost seven decades of European integration .
EUR/USD's weekly close above the 1.1369 Fibonacci level, a 38.2% retrace of the 1.2556 to 1.0636 (2018 to 2020) drop, puts the overall focus on the 2020 1.1495 high, posted back in March. Through 1.1495 will unmask the 2019 1.1570 peak. Fourteen-week momentum has been positive for five weeks in a row, further reinforcing the underlying medium-term bullish market structure.
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Weekly Chart: https://tmsnrt.rs/2ZKA15K
(Martin Miller is a Reuters market analyst. The views expressed are his own)
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