EUR/USD Price Analysis: Drops below 50-day MA

EUR/USD drops as US-China tensions boost haven demand for the US dollar.
The pair trades below the 50-day average amid bearish readings on intraday technical indicators.

Omkar Godbole FXStreet Contributor

EUR/USD is facing selling pressure alongside losses in the US stock futures and oil and is trading well below the 50-day average of 1.0964.

The risk has come under pressure during Monday's Asian trading hours with the Trump administration accusing China of intentionally spreading the coronavirus.

The pair could suffer additional losses over the next few hours, as the hourly chart relative strength index has dived out of an ascending trendline, signaling an end of the pair's bounce from the low of 1.0727.

Moreover, the risk aversion is likely to worsen with President Trump stating soon before press time that the US will end the trade deal reached in December last year if China does not buy the US goods.

EUR/USD could drop to the ascending 50-hour average support at 1.0935. Acceptance under that level would expose 1.09. The dip may be short-lived, as last week's gain confirmed a bullish reversal pattern on the weekly chart.

That said, a close above the 200-day average at 1.1033 is needed to put the bulls into the driver's seat.

Hourly chart

Trend: Pullback

Technical levels

EUR/USD

Overview
Today last price	1.0948
Today Daily Change	-0.0033
Today Daily Change %	-0.27
Today daily open	1.0981

Trends
Daily SMA20	1.0876
Daily SMA50	1.0964
Daily SMA100	1.1007
Daily SMA200	1.1036

Levels
Previous Daily High	1.1019
Previous Daily Low	1.0935
Previous Weekly High	1.1019
Previous Weekly Low	1.081
Previous Monthly High	1.1039
Previous Monthly Low	1.0727
Daily Fibonacci 38.2%	1.0987
Daily Fibonacci 61.8%	1.0967
Daily Pivot Point S1	1.0938
Daily Pivot Point S2	1.0894
Daily Pivot Point S3	1.0853
Daily Pivot Point R1	1.1022
Daily Pivot Point R2	1.1063
Daily Pivot Point R3	1.1106

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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