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#1 11-02-2020 08:53:53

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2831

EUR/USD: the trend remains very bearish despite a slight rebound

EUR/USD: the trend remains very bearish despite a slight rebound, what are the next targets to sell?

The EUR/USD posted very slight gains yesterday, but remains close to the new annual lows reached on Friday around 1.0939, after a week of sharp declines.

For the record, the pair was mainly penalised by a very sharp strengthening of the USD, linked to several US statistics that were much better than expected.

The ADP report, the ISM Manufacturing, the ISM Services, and especially the NFP report at the end of the week all came out well above economists' expectations.

It should also be mentioned that the GBP/USD, in addition to being penalised by the USD's fall, was under pressure due to some not very encouraging information on Brexit's negotiations, with a plunge of about 300 pips last week. The correlation between the two pairs has thus probably also accentuated the EUR's fall.

From a technical point of view, two major bearish signals could be noted last week, with the break below the 100-day moving average, and then below the key psychological threshold of 1.10. The eurodollar pair has been trading below the 100-day moving average.

Now, the next potential support line is around 1.0924, ahead of the psychological threshold of 1.09, followed by the 2019 low around 1.0879.

As far as this week's potentially influential events are concerned, it should be noted that today will be fairly light in terms of the economic calendar.

The serious stuff will begin tomorrow with Eurozone Industrial Production at 11:00. On Thursday, it is mainly the US CPI report for last month that will be monitored.

Lastly, Friday will be by far the busiest day, with Germany's preliminary GDP for the last quarter of 2019, followed by GDP for the eurozone as a whole. In the United States, January's U.S. Retail Sales will be closely watched, along with Industrial Production and the U.S. Consumer Confidence Index according to the University of Michigan.

Currently, the eurodollar is trading around 1.0910 on the forex.

Daily EUR/USD chart

"Anything worth having is worth going for - all the way." - J.R. Ewing



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