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. 

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

 

 

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

AUD/USD keeps gains above 0.6100 on Australian Trade data

Having regained 0.6100 on a jump in the weekly Australian Consumer COnfidence data, AUD/USD consolidates the spike to 0.6120 after the country's Trade and Job Ads data failed to inspire the bulls. US dollar trades broadly flat amid a better market mood. RBA in focus.

AUD/USD News

USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.

USD/JPY News

Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI snaps three-day winning streak

WTI oil fell by over 8% on Monday, ending a three-day winning streak, which saw prices rise from $19.94 to $29.11. The black gold fell as Saudi Arabia and Russia's decision to delay an emergency meeting to discuss output cuts shifted focus back to oversupply concerns.

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures