EUR/USD is trading below 1.18, falling as the safe-haven dollar rises in the fallout of a hedge fund liquidation which may have further ripple effects on markets. Rising coronavirus cases in France and Germany are weighing on the euro.
The pair is trading lower with minor bounces after hitting new lows. Momentum on the daily chart is to the downside the Relative Strength Index is above 30 – outside oversold conditions. All in all, bears are in the lead.
The daily low of 1.1772 is the first support line, and it is followed by 1.1760, which is the 2021 trough. Below recent YTD lows around 1.1760 there are no relevant support levels until the November 2020 lows in the 1.1600 zone back to November and may come into play.
Some resistance is at 1.180 round figure mark, which was a high point on Friday. It is followed by 1.1836, the previous yearly bottom, and then by 1.1875.
