Biden’s European tour and impact on EURUSD

US President Joe Biden is scheduled to meet with European Union leaders today in a bid to renew the two sides’ relations and reach a truce in a trade war and a 17-year dispute over subsidies for aircraft manufacturers.
The President of the European Commission, Ursula von der Layen, and the President of the European Council, Charles Michel, will welcome Biden in Brussels.
The main topic of the meeting is expected to be the renewal of transatlantic relations after the “tense relations” during the time of former US President Donald Trump, Reuters reports.
The Allies have been at loggerheads over customs for 16 years, but an unnamed European official claims the trade barrier could be lifted.
Both sides would likely agree to abolish customs duties related to the dispute over the plane, the source said. The United States and the European Union accuse each other of unjustified state support for the world’s two largest airlines, European Airbus and American Boeing.
Brussels and Washington imposed multibillion-dollar tariffs on all products, but both sides agreed in March to abolish tariffs for four months.
Another key issue of the meeting could be co-operation in the fight against the coronavirus pandemic.
At a press conference in Brussels late last night after the NATO summit, Biden told the Alliance leaders that America is back, Reuters reports. The British agency states that Biden is seeking the support of Europeans in defense of Western liberal democracies in the face of the growing military and economic rise of Russia and China.
We are facing a global health crisis once in a century, and at the same time, demographic values are facing increasing pressure, both externally and internally. Russia and China are trying to drive a wedge into our transatlantic solidarity, Biden told a news conference. After a meeting with NATO leaders, Reuters reported.

Looking at the chart on the daily time frame we see that the euro is still under pressure, testing the currently moving MA50 average at 1.21000. it can easily happen that support drops, and the pair drops to 38.2% Fibonacci level at 1.20500, with a view to 1.20000 psychological level, which is at 50.0% Fibonacci level and MA200 moving average.