EUR/USD On a Downtrend

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Covid-19 cases in the US have outperformed those of China, and this is mainly due to optimism created by governments around the world pledging huge injections of funds and other measures to limit the economic fallout from the coronavirus pandemic. Meanwhile, the greenback pulled back as panic selling eased, but we would expect the situation to reverse again very soon as the coronavirus scare continues to take hold, now counting more than half a million confirmed cases.

We therefore sold EUR/USD pair as the recent run up towards the 1.1100 resistance has been done. We sold at 1.1013 with SL at 1.1085 and TP at 1.0850. The markets could return to a stronger USD as also the safe haven status of the Greenback can be expected with the crisis looming.

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