EUR/USD: Negative Dynamics
Yuri Papshev | Apr 02, 2020 08:23AM ET
Over the past week, the EUR / USD has been growing, making an attempt last Friday to break through the important long-term resistance level of 1.1090 (ЕМА200 on the daily chart). However, a breakthrough did not work, and on Monday the decline in EUR / USD resumed.
Today, the EUR / USD pair is falling for the 4th day in a row, traded at the beginning of the European session near the level of 1.0925, below the resistance level of 1.1090.
In Europe, the situation around the negative impact of coronavirus on the economy is even worse than in the United States.
The current account surplus of the Eurozone balance of payments will provide some support to the euro. However, the growing political tensions and disagreements within the bloc may lower the EUR / USD to 1.0500 mark over the next 3 months, economists say. Will Eurozone leaders be able to resolve their differences over the economic response to the coronavirus pandemic? So, recently Germany and other countries of Northern Europe, members of the European Union, refused the proposal of Italy, France, Spain and six other countries of the Eurozone to issue joint bonds.
EUR / USD also remains below important short-term resistance levels of 1.1000 (ЕМА200 on the 4-hour chart), 1.0965 (ЕМА200 on the 1-hour chart), which speaks in favor of short positions.
Today, financial market participants will pay attention to the publication (at 12:30 GMT) of the US Department of Labor weekly report on the number of unemployment claims.
It is expected that the number of initial claims for unemployment benefits in the week of March 20 - 27 will be 3,500,000, which will be new, from October 1982, anti-record.
The position of the dollar may suffer in the foreign exchange market, since extremely negative data from the US labor market will indicate a slowdown in the US economy, which may soon face the problem of not just recession, but also depression. According to a report presented last week, the number of initial claims for unemployment benefits amounted to 3,283,000. Economists attribute this to the coronavirus, which hit the US economy.
In an alternative scenario, the growth of EUR / USD into the zone above the resistance levels of 1.0965, 1.1000 will speak about the resumption of upward dynamics.
Support Levels: 1.0900, 1.0830, 1.0785, 1.0655, 1.0600, 1.0580, 1.0530
Resistance Levels: 1.0965, 1.1000, 1.1050, 1.1090, 1.1145
Trading Recommendations
Sell by market. Stop-Loss 1.1010. Take-Profit 1.0900, 1.0830, 1.0785, 1.0655, 1.0600, 1.0580, 1.0530
Buy Stop 1.1010. Stop-Loss 1.0960. Take-Profit 1.1050, 1.1090, 1.1145
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.