Euro Latest - EUR/USD Sinks Further as Storm Clouds Gather
EUR/USD Price, News and Analysis:
- EURUSD pressing down on 1.0800
- German Factory orders crater to record low.
EUR/USD - Looking For Support
The single currency continues to move lower after the German Constitutional Court ruled on Tuesday that the ECB’s bond buying scheme (QE) was not balanced and gave the central bank three months to prove that the QE program was ‘proportionate’ otherwise the Bundesbank may pull out of the program. Subsequent commentary from the President of the Bundesbank Jens Weidmann that he would support the ECB in their efforts to meet this requirement calmed the situation but if the market sees any fractures within the EU, the Euro will come under increasing pressure.
Tuesday’s EUR/USD sell-off continues this morning after data showed German Factory orders slumping in March. According to the Federal Statistical Office (Destatis), the real (price-adjusted) order intake in March 2020 was 15.6% lower than in February 2020, seasonally and calendar-adjusted, the largest decrease since the beginning of the time series in January 1991.Compared to February, domestic orders fell 14.8%, international orders slumped 16.1% and orders from the Euro-Zone fell by 17.9%.
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EURUSD has now broken below the 23.6% Fibonacci retracement level at 1.0839 again and a cluster of recent lows around 1.0810. The daily chart shows three bearish candles in a row this week with the pair over 160 pips lower since Monday. Support may show up between 1.0777 and 1.0768 before the April 24 low at 1.0727 comes into play. A short-term area of resistance appears between 1.0839 (Fibonacci) and today’s high at 1.0844 ahead of the 20-dma currently placed at 1.0870.
EUR/USD Daily Price Chart (October 2019 – May 6, 2020)
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