EUR/USD: : Bears remain in control
The world's most popular currency pair hit a 34-month low at 1.0820 and is attempting a recovery. Nevertheless, fundamentals and technicals are pointing lower in the opinion of Yohay Elam from FXStreet.
“While the US is on holiday today – celebrating Presidents' Day – the German Bundesbank is set to provide an updated view on the economy in its monthly report, potentially adding pressure on the common currency. The central bank may provide comments on the coronavirus outbreak that has hit China.”
“The Relative Strength Index of the four-hour chart has risen above 30 – exiting oversold conditions – and allowing for fresh falls. Downside momentum is significant and the currency pair trades well below the 50, 100, and 200 Simple Moving Averages.”
“Critical support awaits at 1.0820, which is the recent low and also the upper end of the ‘Macron Gap’.”
“The other side of the gap is 1.0770, followed by 1.0720.”