EUR/USD erases gains and tests lows below 1.0700
- US dollar mix across the board on Friday, holds to significant weekly gains.
- Euro unable to sustain recovery, back under pressure as Wall Street turns negative.
The EUR/USD pair continued to move off highs during the American session and recently dropped to test recent lows. It bottomed 1.0660 before bouncing back to 1.0700 where it was trading, near Thursday’s close.
As Wall Street turned negative, the greenback reaffirmed the move off lows. Earlier today, risk appetite weakened the demand for the greenback. EUR/USD traded as high as 1.0830, before turning to the downside.
The Dow Jones is falling 0.70% and the Nasdaq 0.40%. Crude oil is now 10% down for the day, after being earlier 10% up. The WTI barrel was trading around $24.00.
Markets remain under pressure. The Federal Reserve announced more liquidity measures on Friday, boosting markets only for a few minutes.
From a technical perspective, the pair holds a bearish bias. On Friday, EUR/USD was about to post the first gain in four days, after falling almost 500 pips. Those signs are not yet enough to point to some kind of consolidation or bullish correction, particularly after sliding back to 1.0700.
“The EUR/USD pair is hovering at around 1.0740, and long-term technical readings indicate that bears dominate the scene as technical indicators head firmly south within negative levels, the Momentum at its lowest for the year and the RSI at 38. The pair plummeted below all of its moving averages, with the 20 SMA gaining bearish traction at around 1.1040, as the 100 SMA crossed below the 200 SMA for the first time since June 2018”, explained Valeria Bednarik, Chief Analyst at FXStreet.