Recent days have shown that most world currencies are losing against the dollar. This is undoubtedly due to the general sentiment of “sell all” and the escape to cash or safe currencies, and the US dollar is considered to be such a currency.
The coronavirus spreading in the European Union puts the economies of these countries in a difficult situation, much worse than the US, where the virus seems to be less active and the announcement of support for US companies by the D.Trump government seems to be greater than that offered by governments in the EU.
Looking at the daily chart of the EURUSD pair we can see that after quite a long period of moving in the downward channel and a sudden break-out at the beginning of March the price has returned to the inside of the channel and currently signals further drops.
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This is particularly evident in the H1 chart, where the Head and Shoulders formation – – was clearly formed. The price has already crossed the neck line (red line), today we see its re-test. Everything points to the continuation of the dips to the nearest support around 1.0860.
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