EUR Pairs Find Support After Corona Panic

If you’ve been trading Euro pairs recently you would have noticed a few of them are starting to settle down a bit and and consolidating around what seems to be a long term support level.

Rolf at Tradeciety has given a pretty nice breakdown of the pairs doing this. His analysis is as follows:

EUR Forex Pairs Trading Into Long-Term Support
During today’s market scan, a few EURO pairs popped up on the radar as the price seems to have (at least for now) found support at long-term key price levels. For all the Forex pairs discussed in this article, we will also consult the Trend Rider indicator to obtain additional momentum and trend information.   See full post here …

It’s always interesting to see similar activity playing out over different currency pairs. The trick is to try and understand what is the fundamental driver affecting the base pair that is probably the cause of this activity.

With that information you can better understand what the next move is likely to be. In this case it turns out Christine Lagarde, the ECB President has given a speech yesterday indicating the ECB will be leaving interest rates unchanged. Eren Senzenger covers this in her article in Fxstreet below:

Lagarde speech: Euro area GDP could fall by between 5% and 12% this year

“Euro area facing a recession of unprecedented magnitude and speed in peacetime.”
“Measures to contain virus have largely halted activity.”
“Economic activity largely halted.”
“Surveys have plunged, suggesting sharp contraction in growth.”
“Scenarios suggest euro area GDP could fall by between 5% and 12% this year.”
“Recovery speed uncertain.” See full post here …

Source: https://www.fxstreet.com

Here is the ECB Governing Council presser where she delivers the news and a bit more.

Pretty dry stuff. As usual the ECB trying to put a happy face on a pretty dire situation. But for the time being it does mean central bank support for the EU economy.

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