The EUR is in full swing lower for a second consecutive session. Having failed to break out at psychological resistance at 1.1200 we might now see the pair heading lower towards the mid 1.09 range. Volatility might be helpful tomorrow when the ECB interest rate decision will be announced.
EUR/USD is currently set for more losses as the greenback continues to recover and as investors try to weigh developments on a number of different fronts. On the one hand, we have confirmed cases of the Coronavirus in the U.S. which if not contained could have a negative impact on the U.S. markets, much like what happened in Chinese stock markets; on the other hand, we have an ongoing impeachment trial, the Davos meeting and the upcoming negotiations of the US-China’s ‘Phase 2’ trade deal.