EUR/USD Stays Below 1.1300 as Risk Appetite Shrinks

Currency exchange rate board of multiple currencies
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. 

Related tags: EUR Forex USD

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