Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

The Euro is trading lower against the U.S. Dollar on Wednesday as optimism about a potential coronavirus vaccine pushes up demand for higher-yielding assets. Losses are being limited, however, by worries about how the drug will be delivered and by a surge of new infections in the United States that threatens to derail the fragile economic recovery.

At 15:08 GMT, the EUR/USD is trading 1.1752, down 0.0071 or -0.60%.

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

75% of retail CFD investors lose money

ECB Eyes More Bond Buys, Cheap Loans to Keep Euro Zone Afloat

The European Central Bank will focus on more emergency bond purchases and cheap loans when it puts together its new stimulus package next month to help the pandemic-hit Euro Zone economy, ECB President Christine Lagarde said on Wednesday.

Lagarde said inflation in the 19-country bloc was now likely to remain negative for longer than expected as a second wave of the COVID-19 outbreak forces new restrictions on economic activity.

She also added, “While the latest news on a vaccine looks encouraging, we could still face recurring cycles of accelerating viral spread and tightening restrictions until widespread immunity is achieved,” she added.


Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on Monday and its confirmation the next day.

A trade through 1.1920 will signal a resumption of the uptrend, while a move through 1.1603 will change the main trend to down.

The short-term range is 1.2011 to 1.1603. The EUR/USD is currently trading on the weak side of its retracement zone at 1.1807 to 1.1855, making this area resistance.

The minor range is 1.1603 to 1.1920. Its retracement zone at 1.1762 to 1.1724 is currently being tested. Trader reaction to this area could determine the near-term direction of the Forex pair. Since the main trend is up, buyers may come in on a test of this zone.

The major support zone is 1.1691 to 1.1616.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD into the close is likely to be determined by trader reaction to 1.1762.

Bearish Scenario

A sustained move under 1.1762 will indicate the presence of sellers. This could trigger a further decline into the Fibonacci level at 1.1724. If this level fails then look for the move to extend into the main 50% level at 1.1691.

Bullish Scenario

A sustained move over 1.1762 will signal the presence of buyers. This could create the upside momentum needed to challenge the 50% level at 1.1807.

For a look at all of today’s economic events, check out our economic calendar.

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.