EU stock markets opened sharply higher this morning as investors hope that the region could be seeing a plateau in the coronavirus outbreak very soon. It should be noted that the numbers of new infections in Spain and Italy are going down further but hard-hit Italy is having doubt whether the EU government will help the country and its amassed financial burden after the lockdown.
The market is clearly in a rebound phase currently but could head lower again. If we see current developments turning worse we might see the USD picking up momentum and the EURUSD heading lower. Also, the EUR is still vulnerable for further selling due to the debt burden of Italy, Spain and potentially France. We would, therefore, sell EURUSD at 1.0785 with SL at 1.0930 and TP at 1.0600.
