EUR/USD probes 200-day MA on US dollar weakness

Dollar sell-off is again fueling gains in EUR/USD, pushing the pair higher to key average hurdle.
Downside risks persist as the virus outbreak is showing no signs of slowing down in the Eurozone.

Omkar Godbole FXStreet Contributor

Dollar sellers continue to dominate the proceeding in the FX markets on the last trading day of the week, pushing EUR/USD higher to the 200-day average hurdle lined up at 1.1082.

Dollar under pressure

The greenback is prolonging its recent downside bias with the dollar index, which tracks its value against majors, currently trading at lows below 99.00, representing a 0.60% drop on the day, having shed 1.47% and 0.82% on Thursday and Wednesday, respectively.

The sustained selling could be attributed to concerns regarding the US labor market, triggered by the official data released Thursday, which showed the initial jobless claims topped 3.2 million last week, beating the forecast for 1.5 million by a big margin. Additional downside pressure may be coming from the uptick in the global equity markets.

However, there is little news on the domestic front to support the ongoing EUR/USD rally. "Spain’s coronavirus death toll officially passed China’s, becoming the second-highest in the world. The health system is collapsing underneath the weight of the disease and the economy will follow," according to BK Asset Management's Kathy Lien.

There is general consensus that the economic damage across the Eurozone is likely to be more severe than other parts of the world. As a result, a sudden bearish reversal in EUR/USD cannot be ruled out.

On the data front, the focus will be on the US Personal Spending figure for February, scheduled for release at 12:30 GMT.

Technical levels

EUR/USD

Overview
Today last price	1.1079
Today Daily Change	0.0048
Today Daily Change %	0.44
Today daily open	1.1031

Trends
Daily SMA20	1.1061
Daily SMA50	1.0999
Daily SMA100	1.1048
Daily SMA200	1.1083

Levels
Previous Daily High	1.1059
Previous Daily Low	1.087
Previous Weekly High	1.1237
Previous Weekly Low	1.0638
Previous Monthly High	1.1089
Previous Monthly Low	1.0778
Daily Fibonacci 38.2%	1.0987
Daily Fibonacci 61.8%	1.0942
Daily Pivot Point S1	1.0915
Daily Pivot Point S2	1.0798
Daily Pivot Point S3	1.0726
Daily Pivot Point R1	1.1103
Daily Pivot Point R2	1.1175
Daily Pivot Point R3	1.1291

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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