Currency Pair: EUR/USD
Chart: 60 Min Charts
Short-Term Bias: Bearish
Financial uncertainties paired with fears of a deepening recession throughout the euro-region has certainly weighed on the single-currency throughout the month, and the EURUSD is likely to face increased selling pressures over the coming months as market participants expect the European Central Bank to continue its easing cycle in March. After reaching a low of 1.2329 in October, the EURUSD snapped back to reach a high of 1.4720 on 12/18, and has traded within a broad range over the past month, but earlier this morning the pair broke below support at 1.2700, which favors a bearish forecast for the pair. Over the next few hours of trading, we may see the euro-dollar continue to move lower, but as the pair remains heavily oversold, I would expect to see a short-term retracement to follow over the week to fill-in the gap from the 120 SMA.
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