EUR/USD Stays Below 1.1300 as Risk Appetite Shrinks

As investors scale back their risk appetite, the U.S. dollar - widely regarded as a safe-haven asset - is rising against other major currencies...

FOREX 3

The U.S. dollar is strengthening against other major currencies.

Investors are doubtful about smooth reopening of economies from coronavirus-induced shutdowns. In the U.S., as new infections per day spike to more than 50,000, state governors are slowing the return to business.

As investors scale back their risk appetite, the U.S. dollar - widely regarded as a safe-haven asset - is rising against other major currencies like the euro, British pound, Australian dollar and Canadian dollar.

On an Intraday 30-minute Chart, EUR/USD remains on the downside after retreating from an intraday high of 1.1370 seen yesterday.


Source: GAIN Capital, TradingView

In fact, it is trading within a Bearish Channel while being Capped by the descending 20-period Moving Average.

Note also the Relative Strength Index has dipped below the over-sold level of 30 indicating strong downward momentum for the pair.

Downside Support could only be found at 1.1240 and 1.1220 (around the low of June 3).

Bearish investors should take the level of 1.1290 (around the Upper Bollinger Band) as Key Resistance (Stop-loss) Level. 


More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.