Euro Rally

EUR/USD – Weighed by the ECB, Supported by the Fed

The Euro finished its NY trading session at 1.1190 after the ECB left policy rates unchanged and failed to relief investor fears. The Euro dropped immediately to an overnight and 3-week low at 1.1055 before spiking back to 1.1216 a few hours later following the Federal Reserve announcement.
The US central bank announced a USD 1.5 trillion liquidity package that includes bond purchases, and supported the shared currency.

EUR USD - 1 H Chart - ForexLive - 13 March 2020
EUR USD – 1 H Chart – ForexLive – 13 March 2020

The coronavirus pandemic has yet to impact the US as it has the rest of the globe with measures to contain the spread coming relatively later. Some interest rate traders expect the US Fed to cut rates into negative territory this year. Which will see widespread selling of Greenbacks.

EUR/USD has immediate support at 1.1140 and 1.1105. Immediate resistance lies at 1.1220 followed by 1.1270. Look for a choppy trading session between 1.1140-1.12360 today. Be nimble and trade the range shag.


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