EUR/USD: the pair is hesitating right now... (UOB)

The EUR/USD is becoming more and more hesitant on the forex. Tuesday's trading consisted of a drop in the first part of the session, with a daily low at 1.0925, but this drop was then cancelled out by a rebound movement which brought the pair back above 1.10. The pair has been on a downward trend since Tuesday's session.

The same thing happened this morning, with a further bearish acceleration that brought the EUR/USD below 1.10.

If the correction becomes more pronounced, potential support around 1.0950 will be considered, before Tuesday's low at 1.0926 and then the psychological threshold of 1.09, knowing that the 200-hour moving average currently on this threshold reinforces its importance.

If the rise returns, the key psychological threshold of 1.10 is an immediate resistance level, ahead of Tuesday night's highs around 1.1036, then 1.1050 and 1.11.

We will also continue to monitor the evolution of the corona situation, knowing that the number of new cases of covid-19 has stabilized around 3,500 in Italy, but that Spain has seen a significant increase in the number of deaths. France also reported a considerable increase, exceeding 50,000 infections, with over 2,500 new deaths.

Finally, it should be noted that in its technical analysis of the day, UOB bank does not rule out a return of the rise on the pair today:

"We stressed on Tuesday that "the upward pressure has dissipated" and added that "the current weakness could extend to 1.0969 (the next support line is at 1.093)". While our opinion is not wrong as the euro subsequently dropped to 1.0924, the strong and sharp rebound from the trough was unexpected. The rapid recovery may extend to a higher level but for today, a clear breakout of 1.1111 seems unlikely (minor resistance is at 1.1064). Support is at 1.0974 followed by 1.0939. The low of 1.0924 is probably out of reach right now".

Currently, the EUR/USD pair is trading at 1.0926 on the forex.