- EUR/USD is trading 0.38% lower as the US dollar strengthens on Friday.
- US President Trump is dominating the theme after contracting COVID-19.
EUR/USD Price Analysis
EUR/USD has pushed lower on Friday after bouncing off the resistance zone at 1.1769 on Thursday lunchtime. Overnight the dollar strengthened after the news hit the wires that US President Donald Trump contracted the coronavirus. His opposition leader Joe Biden is also being tested as the pair were pretty close at the leader’s debate on Tuesday night.
Looking at the chart, the price has now moved lower towards 1.17. The resistance marked in red was strong and also confluenced with the 38.2% Fibonacci retracement zone. If the price does close lower than 1.17 by the close it could lead to lower levels being targeted next week and the wave low close to 1.1625 could be the next target.
The indicators have also turned bearish. The MACD histogram is now red but the lagging signal lines are yet to break the mid-zone. The Relative Strength Index has just about to crossed the 50 line to the downside which could also indicate more selling pressure is on the horizon.
Overall, the price has broken the consolidation to the downside and now retested the consolidation low. This means there has been some consecutive lower highs and lower lows. The last month’s candle close was also bearish and managed to close below the August real body and this is yet another bearish technical sign.
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