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

The Euro is trading lower against the U.S. Dollar as investors continue to sell the overpriced single currency, while seeking protection in the safe-haven greenback in reaction to rising COVID-19 cases in Europe that could cause governments to impose new restrictions.

Meanwhile, Euro Zone business growth ground to a halt this month, throwing the economic recovery into question, as fresh restrictions to quell a resurgence in coronavirus infections slammed the services industry into reverse, a survey showed on Wednesday.

At 12:22 GMT, the EUR/USD is trading 1.1693, down 0.0016 or -0.14%.

The Flash PMI for the Euro Zone Service Industry plummeted to 47.6 from 50.5, significantly below the breakeven mark and falling short of even the most pessimistic forecast in a Reuters poll that had predicted a reading of 50.5.

Manufacturers fared much better, with the factory PMI climbing to a just over a two-year high of 53.7 from 51.7 and a median forecast of 51.9. While services came in below all expectations, manufacturing was above all of them.


Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed early in the session when sellers took out the previous day’s low. A move through the intraday low at 1.1672 will signal a resumption of the downtrend. A move through 1.1872 will change the main trend to up.

The main range in play is 1.1371 to 1.2011. Its retracement zone at 1.1691 to 1.1616 is currently being tested. The early price action suggests profit-taking or aggressive counter-trend buying is taking place on the initial test of this zone.

A new minor range has formed between 1.1872 and 1.1672. Its retracement zone at 1.1772 to 1.1796 is a potential upside target.


Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to the 50% level at 1.1691.

Bullish Scenario

A sustained move over 1.1691 will indicate the presence of counter-trend buyers. If this move is able to generate enough upside momentum then look for the move to possibly extend into the new minor 50% level at 1.1772 over the near-term.

Bearish Scenario

A sustained move under 1.1691 will signal that the selling is getting stronger. This could lead to a retest of the intraday low at 1.1672. Taking out this level could trigger an acceleration to the downside with the next major target the Fibonacci level at 1.1616.

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.