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#1 13-02-2020 09:16:16

Admin & Trader
From: Paris - France
Registered: 21-12-2009
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EUR/USD: the pair breaks through several key thresholds, 3-year low

EUR/USD: the pair breaks through several key thresholds, hits 3-year low, a look at today and tommorrow's economic calendar

The eurodollar pair finally hit new lows yesterday, with a low point at 1.0864, after spending much of the day consolidating above 1.09, after a low of 1.0889 on Tuesday.

This means that not only has the pair hit new lows for this year, but also that the 2019 low of 1.0878 has been hit. This leaves the door open for a further decline towards the psychological low of 1.08, the next identifiable support.

And while Wednesday's fall was significant, no particular economic report or statements seemed to be behind it.

The main bearish factor on the eurodollar pair was the USD's rise, which continued last week's rally, where the dollar was hailed following better than expected national data.

We can also assume that the coronavirus outbreak, which continues to cause concern with an impressive jump in the number of cases on Wednesday after several days of slowing down, also favors the rise of the USD, considered a safe haven, against the euro, considered to be a more "speculative" currency.

Today, the pair's evolution should once again depend mainly on the economic calendar.

Forex traders will be waiting for the US CPI and weekly US Unemployment Claims at 14:30 GMT, which could cause the dollar to move off the chart if the numbers differ from the consensus.

However, Friday is the most likely time for volatility in the eurodollar pair to skyrocket. Indeed, we will be expecting the Eurozone's preliminary GDP in the morning, followed by US Retail Sales at 14:30, Industrial Production at 15:15, and the US Consumer Confidence Index according to the University of Michigan at 16:00.

As for the technical factors to be taken into account, it should be noted that there is little credible support level ahead of the psychological threshold of 1.08.

In the event of a rebound, the psychological threshold of 1.09 will be considered as the closest resistance level, but only a return above the major psychological threshold of 1.10 would begin to indicate the possibility of a fundamental upward reversal.

Above this, the 100-day moving average around 1.1064 will be the first major upward target, ahead of the psychological threshold of 1.11.

Currently, the EUR/USD pair is trading at 1.0885 on the forex.

Daily EUR/USD chart

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



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