Forex Marketz Daily Forex News – Fully Markets Update
Looking at the euro currency and the above EUR/USD four hour MT4 price action chart, price action remains on the defensive below 1.19. The EUR/USD Forex market turned lower, on Thursday, after challenging the falling trend line in play for the past eight days.
Also of note, the euro is within an ascending triangle chart formation in play over the past week. Forex traders a reacting to negative coronavirus news out of the European Union. France has re-imposed Covid-19 travel and curfews in the country.
France has had a high Covid-19 infection rate that is probably being driven by more infectious variants of the coronavirus. This includes the variant from the United Kingdom that wreaked havoc in the UK during December and January. France will lock down 16 regions including Paris.
This lockdown will shutter non-essential stores and will restrict people from moving over 10,000 meter from their homes. According to France, these new restrictions will take 0.2 percent off their gross domestic product (GDP) in 2021. The regions entering into lockdown make up 40 percent of their gross domestic product.
There is not much on the economic calendar on Friday. Germany will release their monthly producer price index (PPI) and the United Kingdom will publish the Gfk consumer confidence survey.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD price action chart, the relative strength index (RSI) is looking bearish and the euro currency is trading below the two hundred (200) hour simple moving average.
This could mean a challenge of the immediate support level at 1.19. The next downside barrier lines up at the monthly low price point at 1.1835.
A daily close below 1.1835 opens the door for two November 2020 low price points. These downside barrier are in play at 1.18 and 1.1745. On the upside, the first layer of technical resistance lines up at 1.1950.
The next upside barrier lines up at 1.1990 with 1.20 then coming into play. The 200 hour simple moving average lines up at 1.2035.
