ECB, structural financial indicators, Governing Council

EURUSD Slumps to Multi-Year Lows

EURUSD is 1.47% lower at 1.0750 making fresh 40-month lows after the European Central Bank announced earlier a bond-buying program up to €750 billion of company and government debt across eurozone countries in an emergency move to fight the coronavirus outbreak impact. 

On the economic data front, the German IFO Business Climate slumped to 87.7 in the preliminary reading for March 2020. Clemens Fuest, head of IFO institute said that the German economy might shrink by 6% due to the coronavirus spread.

On the technical analysis side, the picture is negative for the pair as it has reached levels that we haven’t seen since December 2016. The first support for EURUSD stands at 1.0731 the daily low. The next support zone would be met at 1.0684 the low from April 21, 2017. 

On the upside, initial resistance stands at 1.0981 the daily top. The next hurdle will be met at 1.1029 the 50-day moving average. More offers would emerge at 1.1060 the 100-day moving average. 

EURUSD Daily Chart

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