EUR/USD long-term technical analysis
Brexit is the reason Euro under pressure or is it the strength in the U.S dollar? We think there is more condition that caused EUR/USD to move lower below 2019 low. The world currently facing coronavirus outbreak in China which spread across the world. Base on the statistic, there is slowing down in rate of death and infection. If the virus could be contained then the market might have ground to recover.
We have announcement of lower growth forecast and possible incoming recession. The news is not great and should trigger a flight to safe-haven currencies such as U.S Dollar, Japanese Yen. Traders will continue to observe the development of the coronavirus situation for now.
Parity discussion might surface again after EUR/USD resume its bearish movement. The pair fall below previous year low and ready to target parity in the long-term. At the current time, the area between 1.0650 – 1.0800 is the area to watch for possible bouce. Below the area, there is 1.0000 – 1.0350 area to watch.
This is a hard time for EUR/USD bull as the pair fell inside the bearish channel range again. We have ample bearish momentum and the pair seems will continue print lower low. It is better to avoid long positions for now until the pair form a major bullish reversal pattern.
EUR/USD bearish streak continues since the fall from 1.1093 high. There is only 1 bullish close out of 11 trading days. Moreover, no slowing down in the bearish momentum of EUR/USD even though the pair has reached 1.0800. On the long-term view, the pair still has more room lower. Stay holding the short positions as long as there is no major bullish reversal happen.
EUR/USD has resumed its bearish trend, no reason to look for a long position for now. At the current time, the pair has reached the 1.0800 support level. Traders who consider long positions will observe 1.0800, 1.0710, 1.0600 for a bounce.
Traders who look for short positions could wait near 1.0850.