EUR/USD: Descent continues as Eurozone's top economies mull lockdown

  • EUR/USD slips to eight-day low on coronavirus concerns. 
  • France, Germany consider imposing a lockdown, which could complicate economic recovery. 
  • Pressure on the ECB to boost stimulus is rising. 

EUR/USD continues to drop as Eurozone's biggest economies, France and Germany, consider imposing the economically-painful lockdown restrictions to counter the rising coronavirus cases. 

The pair is currently trading at 1.1778, representing a 0.13% drop on the day, having hit an eight-day low of 1.1769 early Wednesday. The currency pair is trading in the red for the third straight day, having faced rejection near 1.1860 on Monday. 

Virus concerns weigh

France is reportedly considering a one-month lockdown as the second wave of the coronavirus is showing no signs of slowing down. According to Reuters, Eurozone's economic powerhouse Germany also contemplates a measured lockdown as its health care system is close to breaking point. 

While these measures look less severe than the ones implemented in April/May, they could still harm Eurozone's already fragile economic recovery, resulting in a prolonged period of deflation. 

All things considered, the pressure on the European Central Bank to deliver more stimulus looks to be rising. As such, markets are offering euros. The sell-off will gather pace if the coronavirus numbers continue to rise. 

The US, too, is experiencing the second wave of coronavirus. However, the Federal Reserve faces less urgency to boost stimulus as inflation expectations in the US are holding up relatively well. Coupled with expectations for additional fiscal stimulus, that is likely to support gains in the US dollar. The US fiscal largesse is positive for yields and the greenback. 

Technical levels


Today last price 1.1778
Today Daily Change -0.0017
Today Daily Change % -0.14
Today daily open 1.1795
Daily SMA20 1.1776
Daily SMA50 1.1794
Daily SMA100 1.1643
Daily SMA200 1.1306
Previous Daily High 1.1839
Previous Daily Low 1.1793
Previous Weekly High 1.1881
Previous Weekly Low 1.1703
Previous Monthly High 1.2011
Previous Monthly Low 1.1612
Daily Fibonacci 38.2% 1.181
Daily Fibonacci 61.8% 1.1821
Daily Pivot Point S1 1.1779
Daily Pivot Point S2 1.1763
Daily Pivot Point S3 1.1733
Daily Pivot Point R1 1.1825
Daily Pivot Point R2 1.1855
Daily Pivot Point R3 1.1871



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

GBP/USD hits new 2020 high near 1.35 on Brexit hopes

GBP/USD is rising toward 1.35, the highest since December 2020, shrugging off Brexit concerns. France may reportedly veto a deal if it sees too many compromises from the EU. The final US Services PMI met estimates.


EUR/USD holds onto 32-month highs after US data

EUR/USD is trading above 1.2150, the highest since April 2018. Optimism about a coronavirus vaccine and US fiscal stimulus boost markets and weigh on the safe-haven dollar. ISM Services PMI came out at 55.9, within estimates.


XAU/USD erases gains despite dollar’s weakness

Gold pulled back from weekly highs and dropped to $1823/oz, reaching a fresh daily low. It then rebounded, and as of writing, it trades at $1830, around the same level it closed on Wednesday.

Gold news

Crypto market relentlessly fighting for new yearly highs

Bitcoin is leading the recovery in the cryptocurrency market after reclaiming the position above $19,000. Ethereum has managed to bring down the critical hurdle at $600 while Ripple is holding slightly above $0.62.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info