- EUR/USD benefits from dollar slump, as the coronavirus crisis intensifies.
- March 18 Fed rate cut fully priced in despite strong US jobs data.
- Risk trends will continue to play a key role next week.
The corrective slide in the EUR/USD pair from a new eight-month high of 1.1356 lost legs near 1.1290 region, as the bulls now consolidate the upside around 1.1300, looking to close a dramatic week with a 2.35% gain.
The recovery in the main currency pair from multi-year troughs of 1.0776 gathered steam this week after the coronavirus led economic concerns escalated alongside its count globally and propelled the US Federal Reserve (Fed) to cut rates by 50bps to combat the virus impact.
The emergency Fed rate cut triggered panic across the financial markets instead of lifting the market confidence and pushed the investors to seek safety in the US bonds. The flight to safety in gold and US Treasuries sparked a massive selling in the global stocks and US Treasury yields, with the 10-year benchmark’s rates registering a historic low of 0.674% earlier on Friday.
Given, that markets are fulling pricing-in another Fed rate cut at its March 18 monetary policy meeting. Meanwhile, the European Central Bank’s (ECB) easing stance to combat the virus impact is still on the cards, leaving a monetary policy divergence between the Fed and ECB that adds to the downside in the greenback while underpins the sentiment around the shared currency.
Meanwhile, stronger-than-expected US Non-Farm Payrolls data did little to stall the dollar slump, as the infectious disease-driven broad risk aversion continued to emerge as the main market driver on the final trading day of the week.
EUR/USD technical levels to consider
|Today last price||1.1299|
|Today Daily Change||0.0071|
|Today Daily Change %||0.63|
|Today daily open||1.1228|
|Previous Daily High||1.123|
|Previous Daily Low||1.112|
|Previous Weekly High||1.1053|
|Previous Weekly Low||1.0805|
|Previous Monthly High||1.1089|
|Previous Monthly Low||1.0778|
|Daily Fibonacci 38.2%||1.1188|
|Daily Fibonacci 61.8%||1.1162|
|Daily Pivot Point S1||1.1155|
|Daily Pivot Point S2||1.1082|
|Daily Pivot Point S3||1.1045|
|Daily Pivot Point R1||1.1266|
|Daily Pivot Point R2||1.1303|
|Daily Pivot Point R3||1.1376|
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.