Fundamental Analysis
The Euro reversed lower yesterday after the Fed Chair Powell rejected the idea to implement negative interest rates.
Fears of a broader global recession weigh on the risk sentiment, pushing the Dollar higher.
Risk aversion will likely worsen, sending the Single currency lower, if the US Jobless Claims shows a bigger-than-expected rise in unemployment.
Technical Analysis
The 200-period SMA rejected the bulls for the fourth time this month, as the outlook remains very bearish on the Euro. A break below this 3-month uptrend will shift the sentiment completely to the bears’ side, and with enough momentum we could see price retesting the 0.70 support level and possibly lower in the very near-term.
Support: 1.0750 / 1.07
Resistance: 1.0860 / 1.0885
