EUR/USD rises above 200-week SMA on Trump stimulus talk

• EUR/USD extends Monday's gain on President Trump's stimulus talk. 
• President Trump's team weighs $1 trillion for infrastructure, according to Bloomberg. 
• Risk-on weighs over the US dollar, a preferred safe haven since the beginning of the coronavirus crisis. 

EUR/USD is extending Monday's bullish move with markets offering US dollars on reports that President Trump is considering an additional fiscal stimulus plan. 

The pair crossed above the 200-week simple moving average (SMA) of 1.1332 a few minutes before press time and is currently trading at session highs near 1.1345. The shared currency rose by over 0.6% on Monday, carving a bullish inside day marubozu candle on the back of Federal Reserve's decision to purchase corporate bonds. 

Trump stimulus talk

Bloomberg reported during Tuesday's Asian trading hours that the Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of its efforts to help the economy recover from the coronavirus-induced slump. 

The news has bolstered bullish pressures around the risk assets. The futures tied to the S&P 500, which were up about 0.5% during the Asian session, are now reporting a more than 1.5% gain. 

And the risk reset is again weighing over the US dollar. After all, the global reserve has been treated as a safe haven since the beginning of the coronavirus pandemic. 

Looking ahead, the dollar is likely to remain under pressure, keeping EUR/USD better bid. On the data front, German inflation number for May and the Zew Survey indices for June are scheduled for release along with the Eurozone Zew Survey - Economic Sentiment (Jun) and Labor Cost (Q1). Across the pond, the focus would be on the US Retail Sales (May) and Industrial Production (May). 

The bid tone around EUR/USD will likely weaken if China, the US, or any European nation reports a big rise in the number of new coronavirus cases. Global equity markets were flashing red on Monday before the Fed's announcement on fears of the second wave of the virus outbreak. 

Technical levels