EURUSD: Bears Control The Market Below The Balance Line

On Wednesday, March 18, trading on the EURUSD pair was down at the close. Investors ditched risky assets in the wake of the panic resulting from the spread of the new coronavirus, even despite the emergency measures taken by central banks and the governments of most countries. Consumers empty grocery store shelves, while investors and traders buy US dollars and bonds.

The price of Brent crude oil fell to $24.51 USD per barrel. Trading on US stock exchanges was suspended for a day, after the indices fell by 7%. By the end of the day, the DJIA index had fallen by 6.30%, to 19898.92 points, the S&P500 - by 5.18%, to 2398. The EURUSD pair fell to 1.0802. By the close of the day, the price rebounded by one figure to the level of 1.0919.

Today’s events (GMT+3):

  • 10:00 Switzerland: Trade Balance (Feb).
  • 12:30 SNB Interest Rate Decision.
  • 15:30 Canada: New Housing Price Index (MoM) (Feb).
  • 15:30 USA: Initial Jobless Claims (Mar 13), Philadelphia Fed Manufacturing Survey (Mar), Current Account (Q4).


Current situation:

In the forex market, pressure remains on all currencies. Coronavirus continues to keep the whole world at bay. According to the latest data, the number of cases in the world has grown to 218,000 people. There has been a sharp increase in the disease observed outside of China. The virus is actively spreading in Italy, Iran, Spain, Germany and the USA. Since March 12, the number of infected has increased by 190%, to 137,000 people.

Volatility in the forex market has grown significantly, so the price could well surpass the 135th degree without any rebounds. The EURUSD pair recovered to 157th degree. Bulls have not yet succeeded with their efforts for growth. Panic on stock exchanges adversely affects all markets. The current rate is 1.0879. According to the forecast, I am waiting for a fall to the lower line of the channel and the d4 line to 1.0802.

Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

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