EUR/USD Rate Carves Higher Highs and Lows as Bearish Momentum Abates

EUR/USD Rate Talking Points

EUR/USD extends a miscarry from a yearly low (1.0636) as European officials uncover a incomparable eagerness to support a financial union, and a sell rate might theatre a incomparable liberation as a bearish movement abates, with a Relative Strength Index (RSI) reversing march forward of oversold territory.

EUR/USD Rate Carves Higher Highs and Lows as Bearish Momentum Abates

EUR/USD carves a array of aloft highs and lows as new remarks from European Central Bank (ECB) advise a Governing Council will take additional stairs to fight a weakening opinion for growth, with President Christine Lagarde pledging to “do all required within a charge to assistance a euro area by this crisis.”

At a same time, ECB house member Isabel Schnabel insists that a executive bank will “take serve measures if needed” even yet a Governing Council establishes a Pandemic Emergency Purchase Programme (PEPP), with a central going onto contend that “there are proposals to use a European Stability Mechanism or a European Investment Bank” amid a flourishing array of COVID-19 cases opposite a financial union.

The comments advise a ECB will continue to muster radical collection as President Lagarde skeleton to “explore all options and all contingencies to support a economy by this shock,” though it stays to be seen if a non-standard measures will have a dictated impact as a Governing Council pushes financial process into uncharted territory.

With that said, a miscarry in EUR/USD might infer to be brief lived as a US Dollar advantages from a moody to safety, though new cost movement raises a operation for a incomparable improvement in a sell rate as it carves array of aloft highs and lows, while a Relative Strength Index (RSI) reverses march forward of oversold territory.

Forex for Beginners
Forex for Beginners

Sign adult and join DailyFX Currency Strategist David Song LIVE for an event to plead pivotal themes and intensity trade setups surrounding unfamiliar sell markets.

EUR/USD Rate Daily Chart

Image of EUR/USD rate daily chart

Source: Trading View

  • Keep in mind, a monthly opening operation has been a pivotal energetic for EUR/USD in a fourth entertain of 2019 as a sell rate forged a vital low on Oct 1, with a high for Nov occurring during a initial full week of a month, while a low for Dec happened on a initial day of a month.
  • The opening operation for 2020 showed a identical unfolding as EUR/USD noted a high of a month on Jan 2, with a sell rate figure a Feb high during a initial trade day of a month.
  • However, a opening operation for Mar has spin reduction applicable amid a pickup in volatility, with a pullback from a yearly high (1.1495) producing a mangle of a Feb low (1.0778) as a sell rate slips to a uninformed 2020 low (1.0636).
  • Nevertheless, EUR/USD carves a array of aloft highs and lows following a unsuccessful attempted to exam a Fibonacci overlie around 1.0560 (100% expansion) to 1.0600 (161.8% expansion), with a Relative Strength Index (RSI) highlighting a identical energetic as a oscillator reverses march forward of oversold territory.
  • In turn, a tighten above a 1.0830 (78.6% expansion) to 1.0860 (23.6% retracement) segment brings a overlie around 1.0950 (100% expansion) to 1.0980 (78.6% retracement) on a radar, with a subsequent area of seductiveness entrance in around 1.1040 (61.8% expansion).

Traits of Successful Traders
Traits of Successful Traders

— Written by David Song, Currency Strategist

Follow me on Twitter during @DavidJSong