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French President Emmanuel Macron on Thursday called the coronavirus outbreak a “crisis, an epidemic that is on the way”. Macron was speaking to doctors and other healthcare professionals at a Paris hospital.

Key comments

  • More ambitious budget policy need in EU.
  • 38 coronavirus cases in France.

FX implications

The European Central Bank is expected to be on standby to act, as are all central banks. Although, due to how close the ECB is to zero rates, the central will concur with Macron’s comment about fiscal stimulus required of individual nations. Expect dovish language from the ECB for the near term at least. EUR, however, is the strongest currency today although technically, EUR/USD looks ripe for a downside correction, more on that here: DXY: Markets pricing in a Fed rate cut although a EUR/USD correction is on the cards

EUR/USD daily chart

In volume price analysis, the theory is that price will return back to where the highest volume in price is located, where the most buying and selling has taken place in other words. These areas are called volume nodes and pull price back to equilibrium, making for support and resistance structures on the charts across all time frames.