GOLDWELL：Daily Market Recap - EURUSD

The Euro is trading lower against the US Dollar on Wednesday after the European Central Bank (ECB) announced further bond purchases and another stimulus package in the works for next month. The EURUSD is down 0.32 percent at the time of writing.

Optimism for a covid-19 vaccine appears to have had little impact on the Euro despite lifting most other currencies. Analysts are attributing the lukewarm response in the Euro due to the many headwinds still present in the EU as nations in the bloc continue to be in lockdown without any end in the near future.

ECB president Christine Lagarde said that inflation in the Eurozone was likely to remain negative for longer than expected as the second wave of covid-19 continues to put a strain on consumption levels due to the renewed restrictions.

Regarding the developments in the vaccine she said, “While the latest news on a vaccine looks encouraging, we could still face recurring cycles of accelerating viral spread and tightening restrictions until widespread immunity is achieved”.

From a technical perspective, the main trend in the EURUSD remains up on the daily chart though short-term momentum is beginning to tip in favor of the bears. The EURUSD will have to hold above the 20-day MA along the upward parallel channel to maintain buying interest.

(Chart Source: Tradingview 11.11.2020)

A firm break below the pivotal 1.17667 marks will open the door to a test of the 1.170 level, which should provide some relief to the downside in the near term. The likely range in the EURUSD will be between 1.185 and 1.172 with some choppy trading pattern expected ahead.

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.