Outlook for EUR/USD Turns Bearish

Elementary Euro Forecast: Bearish

• EUR/USD reversed course final week because it turned sharply decrease in response to a call by the European Central Financial institution to maintain Eurozone rates of interest unchanged moderately than minimize them as most merchants and analysts had anticipated.
• The ECB’s resolution raised fears that it’s failing to reply sufficiently to the specter of an financial recession prompted by the Covid-19 coronavirus pandemic.
• The downturn in EUR/USD could subsequently proceed regardless that the US Federal Reserve is anticipated to chop US rates of interest once more this week to assist stimulate the US financial system.

Euro value to weaken additional?

The Euro was undermined final week by a European Central Financial institution resolution to maintain all its key rates of interest unchanged. Though it introduced a number of different measures to ease financial coverage, many merchants and analysts – who had been anticipating fee cuts – had been dismayed, and that’s prone to immediate additional promoting of EUR/USD within the week forward.

The ECB resolution disillusioned Euro bulls as a result of it was interpreted by many as a failure to reply sufficiently to the financial risk posed by the Covid-19 coronavirus pandemic, as an alternative growing strain on Eurozone governments to ease fiscal coverage.

EURUSD Worth Chart, Hourly Timeframe (March 9-13, 2020)

Chart by IG (You may click on on it for a bigger picture)