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.
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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).
— Written by David Song, Currency Strategist
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