EUR/USD Current Price: 1.0806
- The ECB announced an emergency €750 billion aid package but was not enough.
- EU and US data came in worse than anticipated, effects of coronavirus on economy starting to show.
- EUR/USD at risk of falling further despite the latest bounce.
The EUR/USD pair has fallen below the former yearly low of 1.0777, trading at its lowest in almost two years, quickly approaching the 1.0700 level ahead of the US opening. The coronavirus pandemic continues to take its toll on global growth and financial markets, with more central banks injecting huge amounts of liquidity to try to counter it.
The ECB announced late Wednesday an emergency €750 billion "pandemic emergency purchase program" (PEPP) to buy private and public sector securities, which gave the pair some temporal support, sending it to 1.0981 early Asia. Demand for the greenback, however, prevailed. There were also talks making the rounds about Germany planning an emergency package of €40 billion to support small businesses and self-employed.
Germany released an unexpected preliminary estimate of the March IFO Business Climate, which fell to 87.7 from 96. The US, on the other hand, published Initial Jobless Claims for the week ended March 13, which jumped to 281K much worse than the 220K expected. The Philadelphia Fed Manufacturing Survey was also a big miss, down to -12.7 from 36.7 previously.
EUR/USD short-term technical outlook
The EUR/USD pair has reached a daily low of 1.0725, now trading in the 1.0800 region. The short-term picture is bearish, with scope to extend the slump during the upcoming hours. In the 4-hour chart, the pair is currently developing below all of its moving averages, with a firmly bearish 20 SMA, now crossing below the 200 SMA, both around 1.1010. Technical indicators in the mentioned chart have eased their bearish momentum, but hold near oversold levels. Below the mentioned low, the next relevant support and a possible bearish target is the 1.0680 price zone, where the pair has relevant weekly highs from April 2017.
Support levels: 1.0725 1.0780 1.0740
Resistance levels: 1.0800 1.0835 1.0880
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.