Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Colin First

The EURUSD came under severe pressure over the last week as we saw the pair break through the lows of the range for the first time in several weeks on the back of sustained dollar strength. Last week saw a combination of dollar strength and euro weakness.

EURUSD Breaks Through Range Lows

The euro weakness was brought about by the fact that the ECB kept the rates on hold and also refused to give a timeline for the tapering and ending of the QE. The strong incoming data from the Eurozone towards the end of last year signalled that the end of the QE was close and it was also speculated that the QE would be ended by the close of 2018 and then the ECB would focus on hiking rates in the beginning of the coming year. This was priced into the markets as the ECB also added to the bullish fire.

Know where EUR/USD is headed? Take advantage now with 

75% of retail CFD investors lose money


But that anticipation had damped down over the last few weeks as the incoming data has got progressively weaker and last week, we saw the ECB President Draghi sending out a note of caution that the central bank is watching the situation and the economy closely. This was enough for the traders to sell off the euro which had already been weak due to the gaining dollar over the first few days of the week, which was seen all across the board.

Looking ahead to the coming week, we are going to see the end of the month and the beginning of the new one and hence we can safely expect some strong currency flows. Also, with the recent range being broken and the dollar o thw war path, we can safely say that the weakness is likely to continue in the short term which should see the pair making a beeline towards the 1.20 region. We are also going to see the NFP employment report. After the weak report from last month, the dollar bulls would be hoping to see a rebound in the data and if and when that begins to appear, we should see the dollar gain in strength even more in the short term which should act as the trigger for further weakness in the euro.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.