EUR/USD is under growing pressure amid fear of curfews in Germany
|EUR/USD is falling as European coronavirus cases are rising and vaccination remains slow while the safe-haven dollar advances after a hedge fund liquidation cause concerns of further jitters. The pair is eyeing fresh lows as Monday's 4-hour chart is showing bears are in full control, FXStreet’s Analyst Yohay Elam reports.
See: EUR/USD has the November 11 low at 1.1745 in its sights – Commerzbank
Key quotes
“German Chancellor Angela Merkel is reportedly considering a night-time curfew-like in parts of neighboring France. In the meantime, Paris is contemplating slapping its own new restrictions as infections advance at an alarming pace and threaten to overwhelm hospitals. The issues of Europe's largest countries come as the EU is struggling to ramp up its vaccination campaign.”
“The US immunization campaign continues accelerating, with some speculating that the US may soon have a glut of jabs. Investors are also awaiting President Joe Biden's speech on the economy due on Wednesday and potentially encouraging jobs figures due out on Good Friday.”
“On Monday, the dollar benefits not from America's recovery but rather from safe-haven flows. The liquidation of Archegos Capital, a leveraged hedge fund, is set to cause significant losses to several banks. A late sell-off in stocks that the firm held may be followed by additional jitters as trades were leveraged and may still have ripple effects.”
“Euro/dollar is trending lower, with minor bounces after hitting new lows. Momentum on the 4-hour chart is to the downside the Relative Strength Index is above 30 – outside oversold conditions.”
“The daily low of 1.1772 is the first support line, and it is followed by 1.1760, which is the 2021 trough. Some resistance is at 1.1805, which was a high point on Friday. It is followed by 1.1836, the previous yearly bottom.”
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