The Euro has initially tried to rally during the trading session on Monday but gave back the gains as we cannot seem to get a bit of a lift. With that being the case, we are also paying attention to coronavirus figures, which of course are rising in the European Union. That of course is not good for the Euro, and at this point we are starting to see more of a run towards the US dollar in general, so this will be what the first place that most people trade.
To the downside, we have the 50 day EMA coming into the picture just above the 1.17 level, so that of course is something worth paying attention to. Ultimately, the market does look very susceptible to selling pressure, and a bigger “risk off” type of situation. At this point, it is probably only a matter of time before the US dollar gains again, mainly because we are seeing the Euro refuse to break above the 1.19 level. As long as that is going to be the case, it is more likely than not we get a breakdown.
If we break below the 1.17 handle, then it is possible that the market goes looking towards the 1.15 handle. That is an area that will attract a lot of attention as well, especially if the 200 day EMA continues to reach towards it. Either way, this is a market that looks very pro-US dollar given enough time.