- The EUR/USD fell quickly to a new low at $1.2114, the lowest since January 12th.
- The move comes amid hopes on US-Chinese trade relations and a resumption of the US Dollar rally.
- The move completely erases the Draghi-related gains seen earlier.
The EUR/USD is trading around at the lowest levels since January 12th, making a sharp U-turn to the downside. Top White House Economic Adviser Larry Kudlow will go to China and has high hopes for a resolution on the trade issues. The news helps the US Dollar gain ground.
And while the greenback is in the green, the move against the common currency is one of the stronger ones out there. There may have been cascading stops and longs that needed to be covered.
The move comes despite the upbeat tone heard by ECB President Mario Draghi in the press conference. Draghi sees the current slowdown as a moderation that is due to temporary factors and continues seeing the glass half full as indicators are above averages. This confidence sent the EUR/USD to a peak of $1.2209 on his words before turning sharply lower.
The next level to watch is $1.2090, which was the peak in 2017. Further below, the round psychological level of $1.2000 is a significant barrier. Even lower, $1.1920 was a swing low before the pair shot higher early this year.
On the topside, the March 1st high of $1.2155 is now resistance, followed by $1.2210 and $1.2240; both were lows in recent weeks.
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