This Tuesday’s EUR/USD has remained unchanged so far, trapped in a narrow range beneath 1.1300 as the market transitions into holiday thin circumstances.
The fear of a coronavirus looms over the financial markets as well, and it will continue to be a concern for the remainder of this year and the first few weeks of next week.
An Examination Of The Technical Aspects
EUR/USD CHART Source: Tradingview.com
The EUR/USD pair is trading marginally underneath the 1.1300 price band, and the daily graph is showing no signs of a change in direction.
The bearish tendency appears to have been reduced, but it has not been totally eliminated. An extension of the downtrend below 1.1240 should signal more declines ahead, with a test of the recent lows at 1.1220 or 25 seeming probable.
It will appear that the market is susceptible if the price of gold falls below 1.1200. A moderate positive bias will continue ahead of the second half of the American session if the EUR/USD remains above 1.1280 (the critical SMA in the next four hours) before the end of the session.
The next level of resistance is located at 1.1335. It is possible that a move higher would reveal the key resistance level of 1.1354 that, if breached, would signal a significant acceleration to the upside.
The support levels are as follows: 1.1280 1.1225 1.1185
Resistance levels are as follows: 1.1320, 1.1355, and 1.1380.
An Overview Of The Fundamentals
On Mondayregained, the EUR/USD pair gained ground, regaining ground after falling to 1.1237 late on Friday.
The shared currency was among the top performers at the start of the week, despite an ongoing perception degradation across capital markets. Also following the week’s decisions by the Federal Reserve, the Bank of England, and the European Central Bank to keep interest rates unchanged at their respective levels (ECB).
According to a report released after last week’s statements, officials on the Governing Council “sought more acknowledgment of inflation concerns but were denied by the bank’s top economist, Philip Lane, in an unusually vigorous argument,” as stated by individuals familiar with the debate.
On Tuesday, no economic data of significance is expected to be revealed. The stock market and the Treasury market are expected to continue to attract investors’ attention.
Wall Street is seeing big declines for the second day in a row. As risk sentiment worsens, the Dollar may continue to benefit from predicted lower US rates in the context of a flight to quality, with the potential for further strengthening.
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