EUR/USD Current Price: 1.0976
- ECB removes limits to bond-buying in each member state.
- US Federal Reserve Chief Powell said the US may already be in recession.
- EUR/USD heading towards 1.1000 amid the broad dollar’s weakness.
The EUR/USD pair has reached a daily high of 1.0988 during the London session, as speculative interest remained away from the greenback and in spite of a souring market’s mood. The optimism triggered by US Congress relief package, faded during the Asian session, as the coronavirus crisis continues to expand. The number of cases grows exponentially in the US and investors fear an economic collapse not only in the country.
US Fed’s Chair Jerome Powell was on the wires this Thursday, saying that the Federal Reserve is not going to run of ammunition, hinting additional easing is available if needed. Among other things, he said that he expects economic activity to resume in the second half of the year, although he does not know when the economy will recover and that the country may already be in recession. It will depend on how soon the coronavirus pandemic is under control.
Meanwhile, the ECB has started its bond-buying program, changing the usual limits. In a legal document released today, the central bank announced that the limit to a third of each of its member states’ debit, should not apply. US unemployment claims jumped to 3.28 million for the week ended March 20, breaking all charts, although the news barely affected currencies.
EUR/USD short-term technical outlook
The EUR/USD pair is trading around the 38.2% retracement of its latest daily decline at 1.0960. The 4-hour chart shows that the price met sellers around its 200 SMA, while the 20 SMA heads sharply higher below the current level. Technical indicators, in the meantime, advance within positive levels, favouring additional advances, should the pair manage to clear the current area. Pullbacks need to be contained by buyers around 1.0920 to keep the bullish case alive.
Support levels: 1.0920 1.0885 1.0840
Resistance levels: 1.1015 1.1060 1.1100
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