13.03 - EUR/USD suffers losses due to market destruction by a coronavirus
- by George Solotarov
EUR/USD is struggling to recapture 1.12 after the ECB failed to impress investors and broad markets are licking their wounds from the panic sell-off on Thursday. Coronavirus headlines and policy responses such as school closures are eyed.
From a technical perspective, the pair on Thursday showed some resilience below the very important 200-day SMA and bounced off important confluence support near the 1.1065-55 area. The mentioned region comprises of 100-day SMA and 61.8% Fibonacci level of the 1.0778-1.1335 recent upsurge, which should now act as a key pivotal point for short-term traders.
In the meantime, the 1.1100 round-figure mark now seems to protect the immediate downside and act as a strong near-term base. Failure to defend the mentioned handle might negate prospects for any further near-term positive move and turn the pair vulnerable. The pair then might accelerate the slide back towards the 1.1065-55 confluence support before eventually dropping to challenge the key 1.10 psychological mark.