EUR / USD is trading below 1.09, at the lowest since 2017. Worsening conditions in Germany and speculation of more ECB stimulus are weighing on the euro. The dollar benefits from elevated coronavirus fears after China reported a leap in cases. US CPI is awaited.
From a technical perspective, the pair remains vulnerable to extend its ongoing bearish trajectory. However, extremely oversold conditions might sponsor some short-covering bounce, which might still be seen as a selling opportunity. Hence, any meaningful recovery attempt back above the 1.0880-90 region is more likely to remain capped near the 1.0925 supply zone (daily swing highs on Tuesday and Wednesday).
On the flip side, some follow-through selling now seems to accelerate the fall further towards the 1.0800 round figure mark. Bears might then aim towards challenging a support marked by the lower end of an over one-year-old descending trend-channel formation on the daily chart.
From a technical perspective, the pair remains vulnerable to extend its ongoing bearish trajectory. However, extremely oversold conditions might sponsor some short-covering bounce, which might still be seen as a selling opportunity. Hence, any meaningful recovery attempt back above the 1.0880-90 region is more likely to remain capped near the 1.0925 supply zone (daily swing highs on Tuesday and Wednesday).
On the flip side, some follow-through selling now seems to accelerate the fall further towards the 1.0800 round figure mark. Bears might then aim towards challenging a support marked by the lower end of an over one-year-old descending trend-channel formation on the daily chart.