ECB, structural financial indicators, Governing Council

EUR/USD – Trading Heavy Despite ECB QE – 1.0655 Under Pressure

The Euro had its worst daily drop against the US Dollar since June 2018 falling to 37-month lows at 1.0655 before a modest bounce to 1.0680 in late New York. EUR/USD has dipped back to 1.0660 in early Sydney trade.

EURO DOLLAR Daily Chart - IG Daily FX - 20 March 2020
EURO DOLLAR Daily Chart – IG Daily FX – 20 March 2020

Reports that the coronavirus death toll in Italy reached 3,405 a climb of 427 deaths from the previous day is grim news for the globe. And the Euro. Total number of cases has surged to 41,035. Spain recorded 209 deaths yesterday. Italy has outpaced China and it now has the highest COVID-19 death toll in the world. Developments will be closely monitored.

Expect the Euro to remain heavy against the US Dollar and other rivals. Immediate support lies at 1.0660 followed by 1.0620 and then 1.0540. Resistance is found around 1.0725, 1.0780 and 1.0850. Look for a volatile trading session with a likely 1.0570-1.0820 range today. Tin helmets on as you trade this currency.

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