Forex Marketz Daily Forex News – Fully Markets Update
Looking at the euro currency (EUR) on the above daily EUR/USD MT 4 price chart, the single currency is under pressure against the U.S. dollar (USD). There is a bearish flag char pattern in play as well.
Forex traders are worried about the recent nationwide lockdowns, due to spiking coronavirus pandemic infections (Covid-19). Spain has issued a nationwide curfew, France has issued a nationwide national lockdown for a month and the Eurozone’s largest economy, Germany, has also started a new nationwide lockdown due to Covid-19. This is pressuring the sensitive linked euro currency against the safe haven American dollar.
There is also the highly contested election in the United States for President and control of the Senate. This is divisive and deeply heated time and incumbent President Donald Trump has signaled, yet again, he will not accept the results of the election if he loses.
This is supporting the safe haven greenback and hurting currencies like the euro. Today the Eurozone will release monthly unemployment claims data and German BUBA President Wiedermann is speaking. The United States will publish the Federal Reserve’s preferred measure of inflation.
This is the monthly core and headline PCE price index. The University of Michigan is also publishing their monthly revised consumer sentiment index and revised monthly consumer price index. The monthly Chicago purchasing managers’ index will also be released as well as monthly consumer spending data Canada is publishing their monthly gross domestic product (GDP) data and the United Kingdom has no economic data on the schedule.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD currency exchange rate and price action chart, there is a bear flag breakdown in the daily time frame. This breakdown signals that the selloff from the 1 September high price point at 1.2011 is back in play. Focus is now on the downside barrier at the 25 September low price point at 1.1612.
The 14 day relative strength index (RSI) is below the fifty (50) level which is a bearish signal. The 14 day MACD histogram is also signaling a bearish trend as there are deeper bars below the mid-line. A bearish price action trend seems ready to pick up.
With that said a daily close above Thursday’s high price point at 1.1758 would bring the bulls back into the market and invalidate the bearish momentum.
