Is the fall in EURUSD persistent?
Before stepping on the technicalities of the fall in EURUSD, we would like to stress the fact that Euro Zone is a manufacturing-based and slight change in the factors affecting the manufacturing, can take Euro to places.
This Wednesday, EUR Industrial Production m/m came out to be -2.1% against the expected figure of -1.8%, the reason is evident and no stranger to anyone, the outburst of Coronavirus. Euro being a high beta currency is affected by the increased risk related to Coronavirus as the manufacturing has also been impacted. Euro is likely to lower its interest rate in coming up months while the US Fed is keeping its interest rate stance unchanged which is supporting USD. Investors are escalating towards Dollar as safe-haven currency as the market risk is high, so a stronger Dollar and a weak sentiment in Euro are dragging the pair EURUSD to new lows.
The major support level for EURUSD is 1.0330, while the immediate support is seen at 1.0800. If EURUSD will manage to give a close below 1.0800, then we can expect a continuous downside move till 1.0560-----0.4500---1.0330 levels in the coming weeks. Any reversal sign from the given support levels will be a significant one and could be a good opportunity to go long in Euro.