The shared currency has extended its recovery to 1.0908 against its American rival this Wednesday, despite prevalent risk-off mood. EUR/USD is unable to attract buyers as bearish case will be firmer once below 1.0810, Valeria Bednarik from NDDFX informs.
“Coronavirus-related fears keep high-yielding assets under pressure, although the greenback is also out of the market’s favour, as collapsing government bond yields fuel fears of a possible US recession.”
“The US will publish later today January New Home Sales, foreseen up by 3.5% in the month. Meanwhile, US indexes are posting modest recoveries ahead of the opening.”
“EUR/USD has been unable to advance beyond the 38.2% retracement of its latest slump at 1.0900, while the 4-hour chart also shows that a bearish 100 SMA limited the upside.”
“The 20 SMA continues advancing below the current level, converging with the 23.6% retracement of the mentioned advance at 1.0850.”
“Overall, the pair is neutral, with the risk of a steeper decline increasing on a break below 1.0810.”