The Euro has been all over the place during the trading session on Monday, as traders trying to parse whether or not global demand is going to continue to slump, perhaps due to the coronavirus and China, which is the latest headline that a lot of the media is hanging on. It appears that the global demand situation may be slowing down anyway, and of course as Germany is a bulk of what we see in Europe, the fact that the Business Climate numbers were lower than anticipated will weigh upon the value of the Euro as traders concern themselves with whether or not the European Union is trying to stabilize.
EUR USD Forecast Video 28.01.20
If we turn around in recapture the 1.1050 level, it’s likely that we could bounce towards 1.11 handle. At this point, it is a bit premature to suggest that the EU is recovering, but it should be noted that a lot of the numbers have in fact been somewhat stabilizing when looked at on a month per month basis. We could be in the beginning signs of stability, but right now I think it’s a bit of a reach to think that everything will turn around. That being said, if the Euro drops below the 1.0980 level, it’s likely that we drop much further, down to the 1.09 handle, and then possibly even as low as the 1.0750 level which is the scene of a gap that has yet to have been filled.
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This article was originally posted on FX Empire
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