EURUSD Trend Remains Upwards

Most traders remains puzzled by the Euro’s strength vs. the dollar despite the fast spread of the Coronavirus in Europe, and now the shutdown of Italy, which will sure see the economy grind to a halt as we saw in China. However, the Euro remains supported as it is acting as a funding currency and as the Federal Reserve aggressively reduced its key interest rate and is anticipated to cut again on March 18.

Something that could change the mood by investors is a potential addition of QE by the ECB later this week. However, for now, with panic is in the air the EURUSD trend remains upwards.

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EURUSD Technical Outlook

The EURUSD maintains a short-term bullish trend and will remain so as long as the price trades above the March 4 low of 1.1092. I see the March 4 low as the trend defining-level as it is the latest well defined low in the 1-hour chart. A 50% decline of the gain from the March 4 low would not be unsurprising, and I suspect traders will see a decline to the 50% level at 1.1290 as an opportunity to add to their bullish exposure. However, on the price trading below the March 4 low, the short-term trend would have turned bearish and the price could slide to the psychological level of 1.10, followed by the February 28 low at 1.0948.

As long as the EURUSD trend remains bullish the price could reach the 2020 high of 1.1496, followed by the 2019 high of 1.1567.