Breaking: EUR/USD breaks above 1.10 on coronavirus-linked USD weakness, levels

Yohay Elam FXStreet

EUR/USD has hit the highest levels in three weeks, trading at 1.10 and completing a remarkable V-shaped recovery since setting a 2020 low at 1.0777 in mid-February.

Coronavirus has sent stock markets crashing and traders are flocking to safe-haven US bonds. In turn, lower yields are pricing in rate cuts by the Federal Reserve – even as soon as the March meeting.

The common currency is also benefiting from hopes that Germany unleashes fiscal stimulus to face the economic slowdown that began before the disease scare.

The International Monetary Fund has announced it will downgrade its global growth outlook.

Resistance awaits at 1.1020, followed by 1.1035, 1.1065, and 1.11. All served as either support or resistance levels when the currency pair was trending down earlier in February.

Support awaits at 1.0990, 1.0965, 1.0940, 1.0925, and 1.0895.

-- more to come

EUR USD Technical Analysis February 27 2020

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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