EUR/USD Price Forecast: Support Levels Break as New Year Sell-Off Continues
EUR/USD Price Forecast, Analysis and Chart:
EUR/USD Trades Below 1.1100 for The First Time in Three-Weeks
EUR/USD continues to fade lower in 2020 with the pair briefly breaking below 1.1100 before a mild pullback.
A combination of weak Euro-Zone economic data and a resurgent US dollar weighs on the pair with traders now looking ahead to Friday’s US Labor Report (Non-Farm Payrolls) for further USD guidance.The latest CoT also showed that Euro short positions continued to build, adding further pressure on the single currency.
The pair now trade below both the 50- and the 200-dma, a negative sign, and near the 20-dma, currently situated at 1.1092. A break lower would leave the December 20 higher low (1.1066) the next downside target and a comprehensive break of this level would increase negative sentiment for the pair and open the way to the November 29 low print at 1.0981.To the upside, a cluster of dmas and old highs up to 1.1176 may prove difficult for EUR/USD to overcome in the short-term, while the recent five-month high of 1.1240 is likely to remain untested.
EUR/USD Daily Price Chart (June 2019 – January 9, 2020)
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