- EUR/USD moves higher to the 1.0860/65 band on Tuesday.
- The offered bias stays unchanged around the dollar.
- COVID-19 fears keep driving the price action in the global markets.
The shared currency is extending the positive tone for yet another session on Tuesday and is lifting EUR/USD to the area of weekly tops in the 1.0865/70 band.
EUR/USD looks to coronavirus, USD
EUR/USD is so far posting gains for the third consecutive day on Tuesday, managing well to prolong the rebound from last week’s 2020 lows in the 1.0780 zone.
The pair’s upside finds support in the corrective decline in the greenback, all amidst increased fears surrounding the Chinese coronavirus (COVID-19) and the persistent demand for the safe havens, prompting US yields to drop to levels last seen in July 2016 around 1.37%.
In addition, Monday’s positive results from the German IFO survey also lent extra (and unexpected) wings to the pair, which is looking to consolidate in levels well above 1.08 the figure.
Nothing worth mentioning in the euro docket on Tuesday, while all the attention remains on the fast-spreading virus and its impact on global growth prospects.
Across the pond, February’s Consumer Confidence gauged by the Conference Board will be the salient event seconded by the S&P/Case-Shiller index and the speech by FOMC’s R.Clarida at the NABE Conference.
What to look for around EUR
EUR/USD keeps the bid bias unchanged so far this week on the back of upbeat data in Germany, managing at the same time to put further distance from recent YTD lows. As usual, USD-dynamics are seen dictating the pair’s price action for the time being along with the broader risk appetite trends, where the COVID-19 remains in centre stage. On another front, the ECB is expected to finish its “strategic review” (announced at its January meeting) by year-end, leaving speculations of any change in the monetary policy before that time pretty flat. Further out, latest results from the German and EMU dockets continue to support the view that any attempt of recovery in the region remains elusive for the time being and is expected to keep weighing on the currency.
EUR/USD levels to watch
At the moment, the pair is gaining 0.10% at 1.0863 and faces the next up barrier at 1.0879 (2019 low Oct.1) seconded by 1.0954 (38.2% Fibo of the 2020 drop) and finally 1.0981 (monthly low Nov.29 2019). On the downside, a break below 1.0777 (weekly/2020 low Feb.20) would target 1.0710 (monthly low Jan.5 2016) en route to 1.0569 (monthly low Apr.10 2017).
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
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.