|Day's Range||1.08 - 1.081|
|52 Week Range||1.0796 - 1.1440|
Earnings don’t move the overall market; it’s the Federal Reserve Board… focus on the central banks and focus on the movement of liquidity.
Based on the early price action and the current price at 1.0811, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to Monday’s close at 1.0836.
The Euro continues to fall rather hard during the trading session on Tuesday as the German ZEW Economic Sentiment figures came out at less than half as expected.
Risk aversion swept through Asian markets on Tuesday morning after Apple warned investors it may not meet revenue targets for this quarter due to the coronavirus outbreak hitting production and demand in China
Market risk appetite wanes following Apple’s profit warning. Apple is unlikely to be alone and that doesn’t bode well as COVID-19 cases continue to rise.
The Euro initially tried to rally during the trading session on Monday, but as the Europeans went home, the Euro was showing signs of weakness yet again. Ultimately, this is a market that continues to struggle in general, and with the Americans gone, the trading action was a bit less than strong in either direction.
As far as looking for a bottom, there is still too much uncertainty out there regarding the economic impact of the coronavirus to think about a meaningful rally.
It’s a busy week ahead, with private sector PMI numbers likely to reflect the impact of COVID-19 on economies. Falling cases should soften the blow, however.
CURRENCIES The U.S. dollar just spent another week flexing its muscles. While that hasn’t done much to derail upside momentum for the stock market so far, it’s worth remembering that big moves by the word’s reserve currency can send ripples through global financial markets.
The Euro has plunged significantly during the week, breaking through the 1.10 level during the week before, and following through the 1.09 level over this past week.
The Euro rallied a bit during the Friday session, which makes quite a bit of sense considering that the weekend is coming, and quite frankly most people who have shorted the Euro against the US dollar have made quite a bit. Now that the Euro has broken major support, it’s more than likely being patient will be the best way to trade this market.
Based on the early price action and the current price at 1.0851, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to Thursday’s close at 1.0840.
The single currency continued to face selling pressure in the late week, declining to lows not seen since the French election of 2017.