The report shows that the value of EUR/USD reportedly made a recovery. The recovery it made towards 1.0100 was modest and the recovery it started making was after it had hit its weakest level.
The data shows that the weakest level the EUR/USD hit was something the pair had hit back in December of 2022. At that time, the weakest level the pair had hit was 1.0070.
Negative Performance of Wall Street Indexes
Even after such a long time period, the indexes for Wall Street have continued experiencing a downtrend. The indexes have continued traveling in the negative territory and they are showing no signs of recovery.
As the indexes have continued trading deeply, the value of the USD is being preserved. As a result of the recent trend of the EUR/USD pair, the rebound in the value of the EUR is being restricted.
The Pair Trades at a Multi-Year Low
Since last Friday, the price of EUR/USD has been trading at a low of 1.0071, which is a multi-year low for the pair. The daily performance chart for the pair shows that the value of the pair has been moving lower at a slow pace. The movement of the pair has been sliding lower than the moving averages of the bearish trend.
It is being hinted that the value of the EUR/USD may experience a bearish breakout if the value of the pair keeps falling below the technical indicators.
Even the 4-hour chart for the pair indicates a downward trend. It shows that the bears have been making an attempt to bring the price of the pair down to the 20-day SMA. The particular price will be achieved if the pair keeps moving downwards.
The technical indicators have continued displaying a downward trend, constantly declining to lower levels. It shows that the pair is constantly moving south, suggesting a negative movement. It shows that the interest of the traders is to keep selling the pair.
Support Levels and Resistance Levels
The technical analysis suggests that the first support level for the EUR/USD pair was 1.0075. The second support level for the pair is 1.0030 and the third support level is 0.09985.
Then come the resistance levels for EUR/USD, which suggests that the first resistance level is 1.0125. The second resistance level is 1.0165 and the third resistance level was 1.0200.
Now, the pair is moving closer to the latest range’s lower end, which is around the 1.0100 threshold, it may move below that.
While the value of the pair EUR/USD is moving in the negative zone, there is another major concern that is imminent. The situation is getting worse in China day by day due to the coronavirus. The country may soon move towards strict lockdowns due to the COVID-19 outbreak.
The recent developments in China suggest that there may be a shift in the values of the pairs on a significant level.